Monday, December 28, 2009
Monday, December 21, 2009
Monday, December 14, 2009
Friday, October 2, 2009
Landlord Quick Tip #23
Landlord Quick Tip
Tip #23: Build a Tenant File ChecklistWhether it’s doing your taxes, collecting unpaid rent, filing an eviction, or defending a lawsuit for injury or discrimination, what you have — or don’t have, in your files will decide the outcome.
Here’s a good way to organize your tenant files, so you are sure to have the information you need, when you need it:
Copy of your rental ad, notes of initial phone conversation, first tenant meeting
The signed, completed application
The screening reports
Notes from all reference checks– personal, employment and emergency contact verifications
The signed lease
Copy of the first check/s
The signed move-in checklist and any amendments, along with photos, videos (or links to retrieve them)
All correspondence, including phone messages, repair requests, notes of conversations
Repair records
Record of each month’s payments
Tenant updates, including lease amendments, updated credit screens (long-term tenants), updated employment, reference, contact info
Copies of restraining orders, divorce decrees, police reports
Move-out Checklist and Photos/Video
Forwarding address
Security deposit reconciliation
Much of this information is confidential so make sure you keep it private, and safe.
Kudos if you calendar 90 days before move out — so you can take steps to retain your tenant before they start to look around. Remember not to shelve files where there’s unpaid debt — you have years to collect it.
Did we leave anything out? What else do you keep in your tenant files? Comment below if you have more suggestions.
Last week’s Landlord Quick Tip
Do you have a tip to share with other landlords? Contact our editor at kim@joinaaoa.org.
Tip #23: Build a Tenant File ChecklistWhether it’s doing your taxes, collecting unpaid rent, filing an eviction, or defending a lawsuit for injury or discrimination, what you have — or don’t have, in your files will decide the outcome.
Here’s a good way to organize your tenant files, so you are sure to have the information you need, when you need it:
Copy of your rental ad, notes of initial phone conversation, first tenant meeting
The signed, completed application
The screening reports
Notes from all reference checks– personal, employment and emergency contact verifications
The signed lease
Copy of the first check/s
The signed move-in checklist and any amendments, along with photos, videos (or links to retrieve them)
All correspondence, including phone messages, repair requests, notes of conversations
Repair records
Record of each month’s payments
Tenant updates, including lease amendments, updated credit screens (long-term tenants), updated employment, reference, contact info
Copies of restraining orders, divorce decrees, police reports
Move-out Checklist and Photos/Video
Forwarding address
Security deposit reconciliation
Much of this information is confidential so make sure you keep it private, and safe.
Kudos if you calendar 90 days before move out — so you can take steps to retain your tenant before they start to look around. Remember not to shelve files where there’s unpaid debt — you have years to collect it.
Did we leave anything out? What else do you keep in your tenant files? Comment below if you have more suggestions.
Last week’s Landlord Quick Tip
Do you have a tip to share with other landlords? Contact our editor at kim@joinaaoa.org.
Monday, September 28, 2009
Landlords Who do Not Screen are Shooting Themselves in the Foot by Bill Gray
Landlords Who do Not Screen are Shooting Themselves in the Foot
Posted by Bill Gray on September 23, 2009
Of the 20 to 30 emails I receive per day from landlords with tenants who owe them money, 5 or 6 are from landlords who did not screen their tenants before they rented to them and are now upset that the tenant burned them. I shake my head when I read these requests for help.
For whatever reason, the landlord rented to someone who “looked okay” and then got upset when the tenant burned them. Would these landlords buy a used car sight unseen? Or show up at a dog shelter and say, “give me any dog, I don’t need to see it or know anything about it.”? Of course they wouldn’t. As absurd as this sounds, it is basically how they run their rental business.
As I scratch my head I always wonder why. Do they just not know how to screen? If this is the case, I am happy to help educate them on good business practices that will help them reduce the possibility of a tenant burning them, or help collect any debt that could not be foreseen. Most of my articles emphasize the good business practices landlords should use to minimize tenant debt.
The cynic in me says that a certain percentage of landlords who run their business sloppily, just don’t care who they rent to. The only advice I can offer these types of landlords is, “good luck”. That pile of debt you are writing me about is the by-product of the way you run your business. There is nothing I can do for you other than to ask you to reconsider how you go about being a landlord. To continue running your business as if it were a hobby will continue to cost you money and possibly get you sued if you violate the law.
Maybe they don’t want to spend the very small amount of money it costs to screen a tenant. Seriously? You don’t want to spend $20 to screen, but you are writing me for advice about the $6000 your tenant owes you? Think about how ridicules this scenario sounds.
As I have published in other articles, I do not consider myself a landlord or tenant advocate. I encourage landlords to run their businesses legally and in a way that minimizes their risk. I also expect tenants to pay their rent and take care of the property they are renting.
Please email me your questions and will try to help you.
Bill Gray Bill@thelandlorddoctor.com
www.thelandlorddoctor.com
Posted by Bill Gray on September 23, 2009
Of the 20 to 30 emails I receive per day from landlords with tenants who owe them money, 5 or 6 are from landlords who did not screen their tenants before they rented to them and are now upset that the tenant burned them. I shake my head when I read these requests for help.
For whatever reason, the landlord rented to someone who “looked okay” and then got upset when the tenant burned them. Would these landlords buy a used car sight unseen? Or show up at a dog shelter and say, “give me any dog, I don’t need to see it or know anything about it.”? Of course they wouldn’t. As absurd as this sounds, it is basically how they run their rental business.
As I scratch my head I always wonder why. Do they just not know how to screen? If this is the case, I am happy to help educate them on good business practices that will help them reduce the possibility of a tenant burning them, or help collect any debt that could not be foreseen. Most of my articles emphasize the good business practices landlords should use to minimize tenant debt.
The cynic in me says that a certain percentage of landlords who run their business sloppily, just don’t care who they rent to. The only advice I can offer these types of landlords is, “good luck”. That pile of debt you are writing me about is the by-product of the way you run your business. There is nothing I can do for you other than to ask you to reconsider how you go about being a landlord. To continue running your business as if it were a hobby will continue to cost you money and possibly get you sued if you violate the law.
Maybe they don’t want to spend the very small amount of money it costs to screen a tenant. Seriously? You don’t want to spend $20 to screen, but you are writing me for advice about the $6000 your tenant owes you? Think about how ridicules this scenario sounds.
As I have published in other articles, I do not consider myself a landlord or tenant advocate. I encourage landlords to run their businesses legally and in a way that minimizes their risk. I also expect tenants to pay their rent and take care of the property they are renting.
Please email me your questions and will try to help you.
Bill Gray Bill@thelandlorddoctor.com
www.thelandlorddoctor.com
Tenant Displaced From Unit Fights For Compensation
AC Outage Could Bring Rent Strike
by Robert Griswold
Tenant displaced from unit fights for compensation
by Robert Griswold
Q: Our son is renting a condo in an area where it gets very hot in the summer. Two weeks ago, he came home from work to find that his air conditioning unit was not working. It was after hours on Friday evening and he tried to reach the property management agency to have them check it out, but no one was in so he left a voicemail message on their answering machine. They have no emergency number and the office is open only Monday through Friday from 9 a.m. to 5 p.m. The temperature reached nearly 110 degrees that Saturday and Sunday.
My son was inconvenienced — he couldn’t stay in the rental unit because the heat was unbearable. We watched his dogs for him and he spent the weekend at a friend’s house and went to work from his friend’s house. He was able to reach the property management office on Monday and they came right out to fix the air conditioning unit that same day.
He called them on Tuesday to talk with them about his inconvenience and the disruption to his life. He is trying to get compensated for having to spend time away from the place he was renting, having someone else take care of his dogs, and the physical and emotional strain of not being able to live in a home that he is paying to rent. The property management company said not having air conditioning did not constitute an emergency, not even when it is 110 degrees. They claim that they actually do have an “on-call” person that regularly checks the answering machine throughout the weekend. But because their air conditioning company charges extra on weekends the earliest his air conditioning unit could have been fixed was on Monday, and that is what they scheduled.
He feels very strongly that he is entitled to significant compensation because his air conditioning unit ran for six hours straight to get the condo down from 96 degrees to 82. What are his legal rights? Can he withhold his rent for next month? Should he hire a lawyer? Maybe he should simply move out?
A: Clearly you and your son are very passionate about this issue and there is no doubt that he was inconvenienced. With temperatures over 100 degrees it can be very uncomfortable without the benefits of air conditioning. However, air conditioning is not automatically a required element of habitability in all areas, including some areas where it can get very hot at certain times of the year. So I would suggest he contact a local landlord-tenant attorney to see if there are some local laws that the attorney feels are applicable.
But let me offer a perspective as a property manager for the last 30 years, including many years in areas that can be very hot especially in the summer. I think your expectations may simply be too high.
The fact is that air conditioning units can and do go out on a Friday evening. Some landlords and property managers think that is when a disproportionate number of these types of problems seem to occur. Most repair personnel work Monday through Friday, and the few that may be willing to work on weekends or evenings will charge 1.5 to two times the usual labor rates, which are already quite high.
Thus, it isn’t reasonable to expect that an air conditioning unit that just happens to go out on a Friday afternoon could not be repaired till Monday. I understand the high temperatures and the impact on his personal living arrangements, but I think the response to this complaint by the landlord was very reasonable.
These things happen and unless you can show that the landlord was negligent and his failure to properly perform maintenance caused the air conditioning unit to break, then you have to understand that it takes time to respond to these situations.
In cases where such an outage constitutes an emergency — such as a threat to health or safety — the landlord may be required to make immediate repairs or to reimburse the tenant for emergency repairs. Again, check with a legal expert on applicable laws.
It may be appropriate for his landlord to offer him a rent credit for his inconvenience for the two or three days that he was without air conditioning. But your ideas of withholding next month’s rent or moving out seem to be overreactions.
We all face these types of inconveniences in daily life. Who hasn’t had a delayed airplane flight that led to missing a connection and completely disrupting one’s plans? But does that mean the passenger is entitled to a full refund? I know with my health insurance plan it can take days to get in to see someone and in the meantime I am in pain and have to limit my activities. But I certainly can’t refuse to pay my next month’s premium just because they couldn’t see me immediately. I can cancel my health insurance policy or vow to never fly on that same airline in the future, but moving out over this incident also seems to be adding to your son’s inconvenience.
I suggest your son sends a polite letter to the property management firm outlining the inconvenience and ask for a rent credit for the two days that he was without air conditioning. This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.” E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News
See Robert Griswold’s feature Landlord Too Lax on Noise Enforcement.
by Robert Griswold
Tenant displaced from unit fights for compensation
by Robert Griswold
Q: Our son is renting a condo in an area where it gets very hot in the summer. Two weeks ago, he came home from work to find that his air conditioning unit was not working. It was after hours on Friday evening and he tried to reach the property management agency to have them check it out, but no one was in so he left a voicemail message on their answering machine. They have no emergency number and the office is open only Monday through Friday from 9 a.m. to 5 p.m. The temperature reached nearly 110 degrees that Saturday and Sunday.
My son was inconvenienced — he couldn’t stay in the rental unit because the heat was unbearable. We watched his dogs for him and he spent the weekend at a friend’s house and went to work from his friend’s house. He was able to reach the property management office on Monday and they came right out to fix the air conditioning unit that same day.
He called them on Tuesday to talk with them about his inconvenience and the disruption to his life. He is trying to get compensated for having to spend time away from the place he was renting, having someone else take care of his dogs, and the physical and emotional strain of not being able to live in a home that he is paying to rent. The property management company said not having air conditioning did not constitute an emergency, not even when it is 110 degrees. They claim that they actually do have an “on-call” person that regularly checks the answering machine throughout the weekend. But because their air conditioning company charges extra on weekends the earliest his air conditioning unit could have been fixed was on Monday, and that is what they scheduled.
He feels very strongly that he is entitled to significant compensation because his air conditioning unit ran for six hours straight to get the condo down from 96 degrees to 82. What are his legal rights? Can he withhold his rent for next month? Should he hire a lawyer? Maybe he should simply move out?
A: Clearly you and your son are very passionate about this issue and there is no doubt that he was inconvenienced. With temperatures over 100 degrees it can be very uncomfortable without the benefits of air conditioning. However, air conditioning is not automatically a required element of habitability in all areas, including some areas where it can get very hot at certain times of the year. So I would suggest he contact a local landlord-tenant attorney to see if there are some local laws that the attorney feels are applicable.
But let me offer a perspective as a property manager for the last 30 years, including many years in areas that can be very hot especially in the summer. I think your expectations may simply be too high.
The fact is that air conditioning units can and do go out on a Friday evening. Some landlords and property managers think that is when a disproportionate number of these types of problems seem to occur. Most repair personnel work Monday through Friday, and the few that may be willing to work on weekends or evenings will charge 1.5 to two times the usual labor rates, which are already quite high.
Thus, it isn’t reasonable to expect that an air conditioning unit that just happens to go out on a Friday afternoon could not be repaired till Monday. I understand the high temperatures and the impact on his personal living arrangements, but I think the response to this complaint by the landlord was very reasonable.
These things happen and unless you can show that the landlord was negligent and his failure to properly perform maintenance caused the air conditioning unit to break, then you have to understand that it takes time to respond to these situations.
In cases where such an outage constitutes an emergency — such as a threat to health or safety — the landlord may be required to make immediate repairs or to reimburse the tenant for emergency repairs. Again, check with a legal expert on applicable laws.
It may be appropriate for his landlord to offer him a rent credit for his inconvenience for the two or three days that he was without air conditioning. But your ideas of withholding next month’s rent or moving out seem to be overreactions.
We all face these types of inconveniences in daily life. Who hasn’t had a delayed airplane flight that led to missing a connection and completely disrupting one’s plans? But does that mean the passenger is entitled to a full refund? I know with my health insurance plan it can take days to get in to see someone and in the meantime I am in pain and have to limit my activities. But I certainly can’t refuse to pay my next month’s premium just because they couldn’t see me immediately. I can cancel my health insurance policy or vow to never fly on that same airline in the future, but moving out over this incident also seems to be adding to your son’s inconvenience.
I suggest your son sends a polite letter to the property management firm outlining the inconvenience and ask for a rent credit for the two days that he was without air conditioning. This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.” E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News
See Robert Griswold’s feature Landlord Too Lax on Noise Enforcement.
Monday, September 21, 2009
Friday, September 18, 2009
New Law Requires Pool, Spa Upgrade by Phillip Miller
New Law Requires Pool, Spa Upgrade
Avoid Hefty Fine, Pool or Spa Closureby Phillip Miller
By now most of you are aware that all public swimming pools must be compliant with the Virginia Graeme Baker Pool & Spa Safety Act. The Act, effective as of December, 2008, requires that all suction outlets be equipped with ANSI A112.19.8-2007-approved VGB covers.
If your pool is not designed with split main drains and equalizers (with drains separated at least 36 inches apart), it must have unblockable drains or have a secondary safety device, such as a safety vacuum release system (SVRS).
Many pools will not comply with the new legislation by merely changing the main drain covers, because the sump below the drain covers must meet the manufacturer’s written specifications.
In some cases, this will involve construction and design of a new sump.
It is important to have your drains checked and changed to insure your pool or spa is compliant. The fines are hefty, and are being enforced. Don’t risk your tenants being injured or your spa or pool being closed down.
Phillip Miller is the owner of Design Plastering Swimming Pool Renovations, which services most of southern California, and offers Padi Certified Scuba/Underwater Drain Replacement compliant with the Virginia Graeme Baker for most Pools and Spas. This eliminates the need to drain your pool or spa and in most cases the new drains can be replaced in minutes, saving you time and money. Call: (661) 295-0250 or (310) 287-0497 for a free phone consultation.
Avoid Hefty Fine, Pool or Spa Closureby Phillip Miller
By now most of you are aware that all public swimming pools must be compliant with the Virginia Graeme Baker Pool & Spa Safety Act. The Act, effective as of December, 2008, requires that all suction outlets be equipped with ANSI A112.19.8-2007-approved VGB covers.
If your pool is not designed with split main drains and equalizers (with drains separated at least 36 inches apart), it must have unblockable drains or have a secondary safety device, such as a safety vacuum release system (SVRS).
Many pools will not comply with the new legislation by merely changing the main drain covers, because the sump below the drain covers must meet the manufacturer’s written specifications.
In some cases, this will involve construction and design of a new sump.
It is important to have your drains checked and changed to insure your pool or spa is compliant. The fines are hefty, and are being enforced. Don’t risk your tenants being injured or your spa or pool being closed down.
Phillip Miller is the owner of Design Plastering Swimming Pool Renovations, which services most of southern California, and offers Padi Certified Scuba/Underwater Drain Replacement compliant with the Virginia Graeme Baker for most Pools and Spas. This eliminates the need to drain your pool or spa and in most cases the new drains can be replaced in minutes, saving you time and money. Call: (661) 295-0250 or (310) 287-0497 for a free phone consultation.
Thursday, September 10, 2009
Wait Before You Hand Over Keys to a New Tenant by Bill Gray
Wait Before You Hand Over Keys to New Tenant
by Bill Gray
Often after a tenant signs the lease, the landlord immediately hands over the keys. At this point, many landlords miss a critical opportunity to gain profit and minimize the risk that the tenant will eventually leave owing money.
In 30-40% of the tenant debt files I review, either the move-in inspection was done poorly, or not done at all. This makes it difficult to accurately document any damages the tenant may cause while he or she lives in your rental. In turn, this makes recovering the repair costs all the more difficult.
Often a landlord will simply hand the tenant a move-in checklist and say, “Let me know if you find anything wrong.” After the lease is signed, the landlord and all tenants who signed the lease must inspect the rental unit together.
With everyone present, it is very important to meticulously inspect and document the entire unit inside and out. Perform the inspection with your new tenant by your side. Do not just let everyone wander around the rental doing their own inspection. Some landlords go as far as using a urine stick to show there are no pet urine stains in the carpet. I encourage you to check for pet urine before move-in, and I highly recommend it upon move-out.
Make sure your move-in/move-out inspection sheet has room to document the condition of every area of your rental. It also must have spaces where you and your tenant sign the checklist both during move-in and move-out.
Take pictures of the general condition of the rental, especially of any area that may be disputed when the tenant moves out. Digital cameras make storing these photos very easy.
By inspecting the rental together and both signing the inspection sheet, you are sending a very clear message to your tenant without speaking the words: “I expect you to take care of my rental unit; if you don’t, you will be held accountable.”
Before you hand over the keys, perform a detailed move-in inspection with your tenant. You will increase your profit by minimizing the risk of debt when the tenant moves out.
Bill Gray is a tenant debt collection specialist. He offers discounts to AAOA members. For help, see Tenant Debt, or email your questions to Bill@thelandlorddoctor.com.
by Bill Gray
Often after a tenant signs the lease, the landlord immediately hands over the keys. At this point, many landlords miss a critical opportunity to gain profit and minimize the risk that the tenant will eventually leave owing money.
In 30-40% of the tenant debt files I review, either the move-in inspection was done poorly, or not done at all. This makes it difficult to accurately document any damages the tenant may cause while he or she lives in your rental. In turn, this makes recovering the repair costs all the more difficult.
Often a landlord will simply hand the tenant a move-in checklist and say, “Let me know if you find anything wrong.” After the lease is signed, the landlord and all tenants who signed the lease must inspect the rental unit together.
With everyone present, it is very important to meticulously inspect and document the entire unit inside and out. Perform the inspection with your new tenant by your side. Do not just let everyone wander around the rental doing their own inspection. Some landlords go as far as using a urine stick to show there are no pet urine stains in the carpet. I encourage you to check for pet urine before move-in, and I highly recommend it upon move-out.
Make sure your move-in/move-out inspection sheet has room to document the condition of every area of your rental. It also must have spaces where you and your tenant sign the checklist both during move-in and move-out.
Take pictures of the general condition of the rental, especially of any area that may be disputed when the tenant moves out. Digital cameras make storing these photos very easy.
By inspecting the rental together and both signing the inspection sheet, you are sending a very clear message to your tenant without speaking the words: “I expect you to take care of my rental unit; if you don’t, you will be held accountable.”
Before you hand over the keys, perform a detailed move-in inspection with your tenant. You will increase your profit by minimizing the risk of debt when the tenant moves out.
Bill Gray is a tenant debt collection specialist. He offers discounts to AAOA members. For help, see Tenant Debt, or email your questions to Bill@thelandlorddoctor.com.
Wednesday, September 9, 2009
Landlord Quick Tip #20 Provided by AAOA
Landlord Quick Tip
Tip #20: Getting it Rented… Today!
First impressions don’t just count, they can cost you… big time!
Even if you are not in an area experiencing record high vacancies, tenants hear the news on the rental climate, and they are feeling empowered. The longer your unit is on the market, the more you’ll scare away prospects.
Do what it takes to make the place look top-notch BEFORE you run your ad:
Soak the dry spots in the lawn
Replace or clean the kickplate on the front door
Tame the shrubs
Clean the windows
Debug the outdoor lighting fixtures
Replace faded ‘for rent’ signs
Do something cute around the mailbox
Clean up the entry
Your property doesn’t have to look new to be appealing — just tidy. Top home stagers know it pays to engage the senses — smell as well as sight. Beautiful, fragrant flowers around the entrance go a long way. So does the aroma of just-baked cookies wafting through an open window. If all else fails, offer your prospects some fresh fruit to sample as they tour. They’ll remember your property as peachy!
Tip #20: Getting it Rented… Today!
First impressions don’t just count, they can cost you… big time!
Even if you are not in an area experiencing record high vacancies, tenants hear the news on the rental climate, and they are feeling empowered. The longer your unit is on the market, the more you’ll scare away prospects.
Do what it takes to make the place look top-notch BEFORE you run your ad:
Soak the dry spots in the lawn
Replace or clean the kickplate on the front door
Tame the shrubs
Clean the windows
Debug the outdoor lighting fixtures
Replace faded ‘for rent’ signs
Do something cute around the mailbox
Clean up the entry
Your property doesn’t have to look new to be appealing — just tidy. Top home stagers know it pays to engage the senses — smell as well as sight. Beautiful, fragrant flowers around the entrance go a long way. So does the aroma of just-baked cookies wafting through an open window. If all else fails, offer your prospects some fresh fruit to sample as they tour. They’ll remember your property as peachy!
How to Save 5% on Heating Bills in Less Than One Minute by David Lowe
How to Save 5% on Heating Bills in Less Than One Minute
Simply turning your thermostat down by 1 degree can save as much as 5% on your heating costs.
In the summer, increasing the temperature by 1 degree saves 5-8%.
Lower your water temperature to 120 degrees and see more savings.
Install low-flow showerheads to save the cost of water and energy.
Insulation around gaps can save as much as 20% in energy costs.
Installing a programmable thermostat, especially in rental properties, keeps bills from spiking, and keeps utilities low.
These tips provided by David, Lowe, with ControlTemp Thermostats, providing tamper-proof programmable thermostats. Check out ControlTempThermostats.com for more information.
See our Green Forum for more energy savings tips.
Simply turning your thermostat down by 1 degree can save as much as 5% on your heating costs.
In the summer, increasing the temperature by 1 degree saves 5-8%.
Lower your water temperature to 120 degrees and see more savings.
Install low-flow showerheads to save the cost of water and energy.
Insulation around gaps can save as much as 20% in energy costs.
Installing a programmable thermostat, especially in rental properties, keeps bills from spiking, and keeps utilities low.
These tips provided by David, Lowe, with ControlTemp Thermostats, providing tamper-proof programmable thermostats. Check out ControlTempThermostats.com for more information.
See our Green Forum for more energy savings tips.
Friday, August 28, 2009
Current Market Conditions by Howard Bell
Current Market Conditions
Apartment Vacancy Rate Hits Two-Decade Record
by Howard Bell
The economy’s decline leveled off significantly from April through June, confirming that the worst is behind us. GDP declined at an annualized rate of 1% in the second quarter, after shrinking an amazing 6.4 % earlier this year.But consumer spending, 70% of economic activity, continues to fall as Americans continue to save and reduce debt. Economists express concern that our basic spending habits have been permanently altered by this great recession. This is also having an effect on rentals as renters downsize or insist on rent reductions.With this as a backdrop we looked at rental rates which are a prime factor in evaluating a property. We clearly have a long way to go. The Dept. of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out.Apartments.com StudyRent reductions at a 22 year highIn the second quarter the vacancy rate of 7.6% was an increase of 1.5% YOY. Landlords have been facing rising opposition to rent rates agreed to during the boom years. Tenants everywhere are asking for and getting rent reductions. Rents are in decline in every market nationwide in the current quarter with three with marginal exceptions, Tampa, Kansas City and San Antonio.According to an Apartments.com study: For the first time in six years, rents are down nationwide and vacancies are up.
Adding to this market pressure is competition felt from the shadow market or a surge of investor owned homes and condos that account for almost half of the rental stock, expanding the national rental supply.
Despite these recent obstacles, a national Apartments.com survey found that an overwhelming majority of renters are still looking for a new place to live this year and more than half are planning to pay the same or more in rent. (via Reuters) What To Do About Rent ReductionsTenant RetentionIf your are facing rent reductions and you want to retain the tenant, then ask for a new lease. In the 2001 recession, unemployment didn’t really recede for 18 months after the recession was technically over. Tenant retention locked in with a new lease is good strategy and will help you ride out this great recession.How to Rent it FasterStage it. Home staging for a rental plays the same role as staging for a sale. Painting the interior a light neutral color, is an inexpensive way to get a new and clean look and feel. Tired looking places take longer to rent. Leave lights on in each room, and leave blinds open to make rooms look brighter and larger.Sell it. Renting your unit or home is a sales process. Walk through the house as if you were a renter. Consider the negatives and be ready with answers that overcome its shortcomings. Be ready to talk up its features. Create a checklist of the things you like about the house. Use it to sell potential tenants. Check comparable rents with listing sites such as apartment.com or Craigslist. Consider consulting with a professional property manager to determine the right rent range if you still have difficulty.Focus Your AdvertisingUse Print TooConsider the profile of the people you are trying to reach and then advertise in the places where they would be likely to look for a rental unit. If you are renting that basic apartment or studio, you have a good chance of attracting people in need of a lower monthly rent. Think students or people starting out or starting over.Targeting your advertising you will save days on market. University campuses, free neighborhood papers, postings in local supermarkets or coffee houses might be the best place to reach that person.Of Course, the InternetIf you don’t have a professional website you could use the blogs. Sites such as blogger or even Facebook have become so easy to use that you might consider a page for your rental property that features a slide show of vacancies as they come up.As you receive phone calls you might ask them to go to your marketing page slide show and create an interactive conversation right there.Howard Bell PFP CCRM is the founder/editor of Your Property Path.com, featuring over 450 articles on property management, Your Property Path SF, trade talk for the San Francisco real estate industry, Your Property Path News Brief, snap news updates and real estate market info, and Your Property Path Amazon Store. Howard is a property manager in San Francisco and holds a certification in financial planning.See Howard Bell’s feature, New Home Equity Mortgage Available.
Apartment Vacancy Rate Hits Two-Decade Record
by Howard Bell
The economy’s decline leveled off significantly from April through June, confirming that the worst is behind us. GDP declined at an annualized rate of 1% in the second quarter, after shrinking an amazing 6.4 % earlier this year.But consumer spending, 70% of economic activity, continues to fall as Americans continue to save and reduce debt. Economists express concern that our basic spending habits have been permanently altered by this great recession. This is also having an effect on rentals as renters downsize or insist on rent reductions.With this as a backdrop we looked at rental rates which are a prime factor in evaluating a property. We clearly have a long way to go. The Dept. of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out.Apartments.com StudyRent reductions at a 22 year highIn the second quarter the vacancy rate of 7.6% was an increase of 1.5% YOY. Landlords have been facing rising opposition to rent rates agreed to during the boom years. Tenants everywhere are asking for and getting rent reductions. Rents are in decline in every market nationwide in the current quarter with three with marginal exceptions, Tampa, Kansas City and San Antonio.According to an Apartments.com study: For the first time in six years, rents are down nationwide and vacancies are up.
Adding to this market pressure is competition felt from the shadow market or a surge of investor owned homes and condos that account for almost half of the rental stock, expanding the national rental supply.
Despite these recent obstacles, a national Apartments.com survey found that an overwhelming majority of renters are still looking for a new place to live this year and more than half are planning to pay the same or more in rent. (via Reuters) What To Do About Rent ReductionsTenant RetentionIf your are facing rent reductions and you want to retain the tenant, then ask for a new lease. In the 2001 recession, unemployment didn’t really recede for 18 months after the recession was technically over. Tenant retention locked in with a new lease is good strategy and will help you ride out this great recession.How to Rent it FasterStage it. Home staging for a rental plays the same role as staging for a sale. Painting the interior a light neutral color, is an inexpensive way to get a new and clean look and feel. Tired looking places take longer to rent. Leave lights on in each room, and leave blinds open to make rooms look brighter and larger.Sell it. Renting your unit or home is a sales process. Walk through the house as if you were a renter. Consider the negatives and be ready with answers that overcome its shortcomings. Be ready to talk up its features. Create a checklist of the things you like about the house. Use it to sell potential tenants. Check comparable rents with listing sites such as apartment.com or Craigslist. Consider consulting with a professional property manager to determine the right rent range if you still have difficulty.Focus Your AdvertisingUse Print TooConsider the profile of the people you are trying to reach and then advertise in the places where they would be likely to look for a rental unit. If you are renting that basic apartment or studio, you have a good chance of attracting people in need of a lower monthly rent. Think students or people starting out or starting over.Targeting your advertising you will save days on market. University campuses, free neighborhood papers, postings in local supermarkets or coffee houses might be the best place to reach that person.Of Course, the InternetIf you don’t have a professional website you could use the blogs. Sites such as blogger or even Facebook have become so easy to use that you might consider a page for your rental property that features a slide show of vacancies as they come up.As you receive phone calls you might ask them to go to your marketing page slide show and create an interactive conversation right there.Howard Bell PFP CCRM is the founder/editor of Your Property Path.com, featuring over 450 articles on property management, Your Property Path SF, trade talk for the San Francisco real estate industry, Your Property Path News Brief, snap news updates and real estate market info, and Your Property Path Amazon Store. Howard is a property manager in San Francisco and holds a certification in financial planning.See Howard Bell’s feature, New Home Equity Mortgage Available.
Wednesday, August 26, 2009
Social Networking Sites Report More Baby Boomers/Written by Jeremiah Owyang
Social Networking Sites Report More Baby Boomers
“Baby boomers aren’t technology Luddites. More than 60 % of them consume socially created content. You’ll find them leaving their opinions on Web sites and joining social networks.”- Jeremiah K. Owyang (@jowyang), researcher with Forrester Research
There is this perception that adults over 50 only dabble on the Internet, but research is finding that they are spending more time online and interacting in robust social networking communities. Baby boomers using social networking sites such as Facebook™, MySpace™, LinkedIn®, Twitter and YouTube™ are not as uncommon as you may think.
According to The Pew Internet and American Life Project, boomers now account for 35% of all Americans online. A consumer survey of U.S. consumers, from the NPD group, Inc., a leading provider of reliable consumer research, shows that 61% of baby boomer Internet users (age 44 to 61) had visited sites that offer streaming or downloadable video, while 41% had visited social networks.
Baby boomers are finding social networking sites appealing for the same reasons most people do- to stay in touch with people. They are interested in reconnecting with old friends and classmates whom they haven’t talked to in more than 30 years. They enjoy sharing photos with family and friends and staying connected to their children and grandchildren. High school and college reunions are also being organized via Facebook. Nielsen Reports that moms (aged 40-50 with 3+ children) are heavy online shoppers who stay connected via social networking more so than mom’s 39-54. Some are even replacing e-mail with social networking sites for staying in touch with people on an ongoing basis. In addition to sites like Facebook, MySpace and LinkedIn, they are also using boomer-specific sites like eons.com, boommj.com, boomertowne.com and the aarp.org social network. According to Facebook, women over 55 remain the fastest growing group on the site, and growth among the teen and college-age set has been relatively paltry. In absolute numbers there are now even slightly more members between the ages of 45 and 65 than there are 13-to 17-year-olds. Analytics company iStrategyLabs has examined the demographics stats from Facebook’s Social Ads platform, and they have found staggering results. Interestingly, they found that the number of users aged 25-34 has grown 60.8%; the number of users aged 35 to 54 has grown 190.2%, while the number of users older than 55 years has grown a tremendous 513.7%.
Baby boomers are making themselves known in the social media space of the online world. Marketers who neglect to speak to them in the language they are now adapting to will miss out on a rewarding opportunity!
Tags: after 55, Baby Boomers, baby boomers social media, communities, community, Facebook, forrent.com, interests, leads, marketing, media, myspace, online, senior outlook, Seniors, seniors online, Social Networking, Twitter, videos, women, youtube
This entry was posted on Wednesday, August 26th, 2009 at 8:42 am and is filed under Property Managers & Owners, Senior Housing-An After 55 Housing and Resource Guide. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
“Baby boomers aren’t technology Luddites. More than 60 % of them consume socially created content. You’ll find them leaving their opinions on Web sites and joining social networks.”- Jeremiah K. Owyang (@jowyang), researcher with Forrester Research
There is this perception that adults over 50 only dabble on the Internet, but research is finding that they are spending more time online and interacting in robust social networking communities. Baby boomers using social networking sites such as Facebook™, MySpace™, LinkedIn®, Twitter and YouTube™ are not as uncommon as you may think.
According to The Pew Internet and American Life Project, boomers now account for 35% of all Americans online. A consumer survey of U.S. consumers, from the NPD group, Inc., a leading provider of reliable consumer research, shows that 61% of baby boomer Internet users (age 44 to 61) had visited sites that offer streaming or downloadable video, while 41% had visited social networks.
Baby boomers are finding social networking sites appealing for the same reasons most people do- to stay in touch with people. They are interested in reconnecting with old friends and classmates whom they haven’t talked to in more than 30 years. They enjoy sharing photos with family and friends and staying connected to their children and grandchildren. High school and college reunions are also being organized via Facebook. Nielsen Reports that moms (aged 40-50 with 3+ children) are heavy online shoppers who stay connected via social networking more so than mom’s 39-54. Some are even replacing e-mail with social networking sites for staying in touch with people on an ongoing basis. In addition to sites like Facebook, MySpace and LinkedIn, they are also using boomer-specific sites like eons.com, boommj.com, boomertowne.com and the aarp.org social network. According to Facebook, women over 55 remain the fastest growing group on the site, and growth among the teen and college-age set has been relatively paltry. In absolute numbers there are now even slightly more members between the ages of 45 and 65 than there are 13-to 17-year-olds. Analytics company iStrategyLabs has examined the demographics stats from Facebook’s Social Ads platform, and they have found staggering results. Interestingly, they found that the number of users aged 25-34 has grown 60.8%; the number of users aged 35 to 54 has grown 190.2%, while the number of users older than 55 years has grown a tremendous 513.7%.
Baby boomers are making themselves known in the social media space of the online world. Marketers who neglect to speak to them in the language they are now adapting to will miss out on a rewarding opportunity!
Tags: after 55, Baby Boomers, baby boomers social media, communities, community, Facebook, forrent.com, interests, leads, marketing, media, myspace, online, senior outlook, Seniors, seniors online, Social Networking, Twitter, videos, women, youtube
This entry was posted on Wednesday, August 26th, 2009 at 8:42 am and is filed under Property Managers & Owners, Senior Housing-An After 55 Housing and Resource Guide. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Reporting a Tenant to the Credit Bureaus/Written by the Landlord Doctor Bill Gray
Reporting Previous Tenant Debt to Major Credit Bureaus
What happens if you do not pay your doctor, cell phone, or utility bill? You will not only receive some less than friendly phone calls, but your debt will also be reported to Experian, Equifax, and TransUnion. These major credit bureaus will then ding your credit report to show that you owe money, and most debts will remain as a collection account for up to seven years!
Why do companies go to the trouble of reporting these debts? They do it because reporting the debt to the credit bureaus makes it difficult for the debtor to obtain credit, thus increasing the possibility they will get paid the money they are owed. It may also lower FICO scores. If it did not work, trust me, they would not bother reporting.
So why don’t landlords report previous tenants that owe them money to the credit bureaus? It cannot be a matter of cost or a lack of time because reporting is very inexpensive and easy to do. Either landlords don’t know they can report, or they are apathetic about it.
Don’t assume because you sued the tenant and received a money judgment that the money you are owed will show up on one’s credit report. Many simply do not, due to simple clerical errors. You would be surprised at the number of evictions that don’t show up either. Make sure the debt is entered on the credit report as a collection account by putting it there yourself.
In today’s economy, we need every penny of profit we can find. I promise you there are millions of dollars in uncollected tenant debt just sitting in filing cabinets. I bet you have some yourself. This is lost profit, a percentage of which is recoverable.
Up to 50% of tenant debt is recoverable if it is reported to the credit bureaus. Of course, none of it is recoverable if you leave it in your desk drawer. So dust off those old files of previous tenants who owe you money. Report them to the credit bureaus and begin collecting some much needed profit.
To begin reporting tenant debt to all three credit bureaus click here: Start Reporting Now!
What happens if you do not pay your doctor, cell phone, or utility bill? You will not only receive some less than friendly phone calls, but your debt will also be reported to Experian, Equifax, and TransUnion. These major credit bureaus will then ding your credit report to show that you owe money, and most debts will remain as a collection account for up to seven years!
Why do companies go to the trouble of reporting these debts? They do it because reporting the debt to the credit bureaus makes it difficult for the debtor to obtain credit, thus increasing the possibility they will get paid the money they are owed. It may also lower FICO scores. If it did not work, trust me, they would not bother reporting.
So why don’t landlords report previous tenants that owe them money to the credit bureaus? It cannot be a matter of cost or a lack of time because reporting is very inexpensive and easy to do. Either landlords don’t know they can report, or they are apathetic about it.
Don’t assume because you sued the tenant and received a money judgment that the money you are owed will show up on one’s credit report. Many simply do not, due to simple clerical errors. You would be surprised at the number of evictions that don’t show up either. Make sure the debt is entered on the credit report as a collection account by putting it there yourself.
In today’s economy, we need every penny of profit we can find. I promise you there are millions of dollars in uncollected tenant debt just sitting in filing cabinets. I bet you have some yourself. This is lost profit, a percentage of which is recoverable.
Up to 50% of tenant debt is recoverable if it is reported to the credit bureaus. Of course, none of it is recoverable if you leave it in your desk drawer. So dust off those old files of previous tenants who owe you money. Report them to the credit bureaus and begin collecting some much needed profit.
To begin reporting tenant debt to all three credit bureaus click here: Start Reporting Now!
Monday, August 24, 2009
Friday, August 21, 2009
Mobile Tipping Point: Beyond Voice
Mobile Tipping Point: Beyond Voice
Your cell phone is evolving into a business productivity tool…
In the early days of cell phones, they were used merely for talking. Today, cell phones have a myriad of other applications. For many people, their cell phone is their daily organizer, music player, camera, GPS system, and news and weather device. But that’s just the tip of the iceberg. In the very near future, cell phones will also be people’s banks, credit card, keys, remote control, and video conferencing platform, just to name a few. Clearly, today’s cell phones are much more than phones, and tomorrow’s will revolutionize the business world.
In order to stay competitive and ahead of the curve, businesses need to look beyond what the cell phone is today and anticipate where it will be tomorrow. You have to ask yourself, “How is the cell phone changing my customers?” “What new service could I deliver on a mobile platform?” Or, “How are these beyond-voice-capabilities changing my customers’ customers?”
The fact is that if you don’t change with your customers, they won’t be your customers for much longer. For most businesses, their customers are changing rapidly. Are you changing and learning as fast as your customers are?
Because today’s technology is rapidly evolving, you have to go beyond keeping up. Merely keeping up will cause you to always be behind. Rather, you need to jump ahead based on what you know will happen.
What do you know will happen? We know there are three driving forces that create exponential technological change: 1) Processing power doubles every 18 months as it drops in price, 2) Storage capacity doubles, and 3) We get faster speeds and higher bandwidth. Because of the processing power being faster, your cell phone can go online and perform searches faster. Phone companies are continually upgrading their network so the 3G network becomes the 4G network. In less than a year processing power, storage capability, and speed have all doubled, and next year they will double again, making the cell phone as powerful as your current desktop computer.
Additionally, businesses need to look at other countries to see what they’re doing. As Americans, we tend to think we’re the first with technology, but that isn’t always the case (and it’s definitely not the case with cell phones). Whereas we have multiple standards for cell phone technology, many other countries have one national standard so everyone’s phone works the same way. As such, they can roll out new cell phone innovations much faster than we can.
Culture also plays a big role. The Japanese culture, for example, loves their devices and prefers using them over face-to-face conversation. So they have more cultural incentive to unveil the next cell phone use.
The bottom line is smart businesses will start seeing the certainty of technological change of cell phones and will recognize the opportunities that lie within. Following are some current and coming cell phone uses you need to be aware of and using.
Current uses:
· Mobile travel: Currently, some airports allow you to use your cell phone as your boarding pass. You simply download your boarding pass to your phone.When you approach security, you pull up the barcode of your virtual boarding pass and swipe your cell phone under security’s scanner. You can then go through security and board your plane without a paper ticket. Such technology saves your employees’ time when traveling and eliminates the last minute “where did I put my boarding pass” search.
· Mobile media: You probably already have music on your cell phone, and you may even have television programming. But now businesses can disperse training and education to employees as part of that mobile media. So while an employee is waiting in an airport for a flight, she can download the latest training information right from her phone.
· Mobile management: Need to know where your salespeople or delivery drivers are at all times? We all have triangulation or GPS as part of our cell phones. There are programs, such as Looped for the iPhone that allow you, with permission, to bring up a map and see where your employees are located right now. Granted, this program was developed for personal use, so that friends and family could see where each other are, but there’s no reason why a business couldn’t use it to locate employees, drivers, or anyone else who leaves the office for extended periods of time.
Future uses:
· Mobile finance: In the near future, you’ll be able to do banking on your cell phone, such as doing money transfers to other people. How do we know this? Because other countries are already doing it! For example, in Kenya, where we assume everything is behind the times, they have a mobile phone system where if someone owes you money, he can use his cell phone to transfer money from his account to yours. As the technology makes its way to the States, cell phones will become a vital part of people’s banking.
· Mobile commerce: There are places in the world where you can pay for your restaurant, auto service, groceries, parking meters, or any other item with your cell phone - without using a credit card. You’re simply using your mobile phone to pay for the transaction. To prevent fraud, cell phones will have biometric ID capabilities that can detect everything from the user’s fingerprint to voice pattern and facial recognition. Such measures are actually far more secure than using a credit card.
· Mobile customer service: As mega stores dominate the landscape, shoppers need more access to customer service personnel. Imagine a customer being in a huge warehouse type store and being able to use her cell phone to pull up a map of the store and locate the nearest customer service person. Or, even better, imagine that customer being able to touch an icon on her cell phone screen, which automatically lets the customer service rep know where she is and that she needs help. The technology to do this exists today; it’s simply a matter of businesses applying it to this scenario. Imagine the competitive advantage you’d gain if you were the first to roll this concept out.
Opportunity is Calling
The possibilities for tomorrow’s cell phones are limitless: Mobile data … mobile media … mobile finance … mobile commerce … mobile health … mobile marketing … mobile security … mobile location services - these are just the beginning. Over the next few years, cell phone apps (applications) will grow exponentially as well. We’ll see apps for specific segments, such as doctors, lawyers, real estate agents, etc. To stay ahead, your company needs to develop internal tools or apps for your employees that can give your organization competitive advantage, such as an app so salespeople can access key data right on their phone. Developing an app is relatively inexpensive and can work on iPhones, Blackberries and Smartphones.
Ultimately, as we move into the future of cell phone technology, the goal is to get businesspeople to not just crisis manage in the present, but to opportunity manage for the future. When you can start viewing your cell phone in that capacity, you’ll be connected to a whole new world of business that can make a significant impact on your company’s bottom line.
About the Author:
Dan Burrus is considered one of the world’s leading technology forecasters and strategists. He is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients better understand how technological, social and business forces are converging to create enormous, untapped opportunities. Dan has developed the first cell phone business application that allows the user to generate a business plan; the “Competitive Advantage Business Strategy Builder” will be launched in September 2009. For more information, please visit: http://www.burrus.com/.
Your cell phone is evolving into a business productivity tool…
In the early days of cell phones, they were used merely for talking. Today, cell phones have a myriad of other applications. For many people, their cell phone is their daily organizer, music player, camera, GPS system, and news and weather device. But that’s just the tip of the iceberg. In the very near future, cell phones will also be people’s banks, credit card, keys, remote control, and video conferencing platform, just to name a few. Clearly, today’s cell phones are much more than phones, and tomorrow’s will revolutionize the business world.
In order to stay competitive and ahead of the curve, businesses need to look beyond what the cell phone is today and anticipate where it will be tomorrow. You have to ask yourself, “How is the cell phone changing my customers?” “What new service could I deliver on a mobile platform?” Or, “How are these beyond-voice-capabilities changing my customers’ customers?”
The fact is that if you don’t change with your customers, they won’t be your customers for much longer. For most businesses, their customers are changing rapidly. Are you changing and learning as fast as your customers are?
Because today’s technology is rapidly evolving, you have to go beyond keeping up. Merely keeping up will cause you to always be behind. Rather, you need to jump ahead based on what you know will happen.
What do you know will happen? We know there are three driving forces that create exponential technological change: 1) Processing power doubles every 18 months as it drops in price, 2) Storage capacity doubles, and 3) We get faster speeds and higher bandwidth. Because of the processing power being faster, your cell phone can go online and perform searches faster. Phone companies are continually upgrading their network so the 3G network becomes the 4G network. In less than a year processing power, storage capability, and speed have all doubled, and next year they will double again, making the cell phone as powerful as your current desktop computer.
Additionally, businesses need to look at other countries to see what they’re doing. As Americans, we tend to think we’re the first with technology, but that isn’t always the case (and it’s definitely not the case with cell phones). Whereas we have multiple standards for cell phone technology, many other countries have one national standard so everyone’s phone works the same way. As such, they can roll out new cell phone innovations much faster than we can.
Culture also plays a big role. The Japanese culture, for example, loves their devices and prefers using them over face-to-face conversation. So they have more cultural incentive to unveil the next cell phone use.
The bottom line is smart businesses will start seeing the certainty of technological change of cell phones and will recognize the opportunities that lie within. Following are some current and coming cell phone uses you need to be aware of and using.
Current uses:
· Mobile travel: Currently, some airports allow you to use your cell phone as your boarding pass. You simply download your boarding pass to your phone.When you approach security, you pull up the barcode of your virtual boarding pass and swipe your cell phone under security’s scanner. You can then go through security and board your plane without a paper ticket. Such technology saves your employees’ time when traveling and eliminates the last minute “where did I put my boarding pass” search.
· Mobile media: You probably already have music on your cell phone, and you may even have television programming. But now businesses can disperse training and education to employees as part of that mobile media. So while an employee is waiting in an airport for a flight, she can download the latest training information right from her phone.
· Mobile management: Need to know where your salespeople or delivery drivers are at all times? We all have triangulation or GPS as part of our cell phones. There are programs, such as Looped for the iPhone that allow you, with permission, to bring up a map and see where your employees are located right now. Granted, this program was developed for personal use, so that friends and family could see where each other are, but there’s no reason why a business couldn’t use it to locate employees, drivers, or anyone else who leaves the office for extended periods of time.
Future uses:
· Mobile finance: In the near future, you’ll be able to do banking on your cell phone, such as doing money transfers to other people. How do we know this? Because other countries are already doing it! For example, in Kenya, where we assume everything is behind the times, they have a mobile phone system where if someone owes you money, he can use his cell phone to transfer money from his account to yours. As the technology makes its way to the States, cell phones will become a vital part of people’s banking.
· Mobile commerce: There are places in the world where you can pay for your restaurant, auto service, groceries, parking meters, or any other item with your cell phone - without using a credit card. You’re simply using your mobile phone to pay for the transaction. To prevent fraud, cell phones will have biometric ID capabilities that can detect everything from the user’s fingerprint to voice pattern and facial recognition. Such measures are actually far more secure than using a credit card.
· Mobile customer service: As mega stores dominate the landscape, shoppers need more access to customer service personnel. Imagine a customer being in a huge warehouse type store and being able to use her cell phone to pull up a map of the store and locate the nearest customer service person. Or, even better, imagine that customer being able to touch an icon on her cell phone screen, which automatically lets the customer service rep know where she is and that she needs help. The technology to do this exists today; it’s simply a matter of businesses applying it to this scenario. Imagine the competitive advantage you’d gain if you were the first to roll this concept out.
Opportunity is Calling
The possibilities for tomorrow’s cell phones are limitless: Mobile data … mobile media … mobile finance … mobile commerce … mobile health … mobile marketing … mobile security … mobile location services - these are just the beginning. Over the next few years, cell phone apps (applications) will grow exponentially as well. We’ll see apps for specific segments, such as doctors, lawyers, real estate agents, etc. To stay ahead, your company needs to develop internal tools or apps for your employees that can give your organization competitive advantage, such as an app so salespeople can access key data right on their phone. Developing an app is relatively inexpensive and can work on iPhones, Blackberries and Smartphones.
Ultimately, as we move into the future of cell phone technology, the goal is to get businesspeople to not just crisis manage in the present, but to opportunity manage for the future. When you can start viewing your cell phone in that capacity, you’ll be connected to a whole new world of business that can make a significant impact on your company’s bottom line.
About the Author:
Dan Burrus is considered one of the world’s leading technology forecasters and strategists. He is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients better understand how technological, social and business forces are converging to create enormous, untapped opportunities. Dan has developed the first cell phone business application that allows the user to generate a business plan; the “Competitive Advantage Business Strategy Builder” will be launched in September 2009. For more information, please visit: http://www.burrus.com/.
Landlord too Lax on Noise Enforcement
Landlord Too Lax on Noise Enforcement
Is poor management a valid reason to break lease?by Robert Griswold
Q: I have a question about noise. I live on the ground floor of a four-story “luxury” apartment community. We have a “quiet hours” clause written in all of our leases that states residents must be quiet from 10 p.m. to 6 a.m. The tenants who just moved in above me, a family of four, make a lot of noise between 11 p.m. and 2 a.m. almost every night.
I’ve informed the landlord and even bought a video camera to record the noises along with the times. I’ve shown several tapes to the landlord and he agrees that the noises (which include children screaming, running around, thumping, thuds and loud banging noises, in addition to foot traffic) are excessive. However, the tenants have continued virtually unabated with their noise-making.
What do I do if the landlord is unwilling or unable to stop them from waking me up in the middle of the night? I usually have to call security three nights a week. I have more than six months left on my current lease, but do I have grounds to break my lease early? Can I ask that they be given an eviction notice? Do I have grounds for breaking the lease early without penalty? For the last two months I haven’t been getting much sleep and I don’t know what to do.
A: One of the most prevalent complaints received by landlords is about the noise level created by another tenant. Such complaints are very challenging and a source of frustration for both landlords and tenants. A certain amount of noise is expected and must be tolerated when living in a multifamily apartment community. However, tenants need to be courteous and considerate of their neighbors.
Noise complaints are one of those issues that I believe require an escalating level of response. Ideally, just contacting your neighbor directly and asking them to be courteous should resolve the matter. But if that doesn’t work, then you were correct in contacting the landlord to see if he can intervene. The landlord already has a “quiet hours” policy so he certainly is aware of this issue and seems to agree that excessive noise is unacceptable.
The first step by the landlord or onsite property manager would be to make a phone call and ask the tenant directly but politely to be sensitive to others and keep the noise down as much as possible. If that doesn’t work, then the landlord should make a written formal request of your upstairs neighbor to cease and desist from any activity that could be disruptive. This written notice should be on a proper legal Notice of Breach of Lease form and cite the failure of the tenant to abide by the “quiet hours” policy.
If all else fails, you may want to contact your local municipality to see if it has noise ordinances, and make a formal written complaint. Many times these policies will require more than a single incident of excessive noise before they will take action. I have also seen municipal policies requiring that at least two or more neighbors be willing to file a formal complaint before the municipality will formally investigate the alleged noise violation.
If you are not able to resolve the issue with any of the above methods and are still interested in breaking your lease, then you should talk to your manager and point out that you believe the landlord has breached the lease agreement by failing to enforce their own “quiet hours” policy. You may find that the landlord is agreeable and will let you mutually agree to break the lease. However, if the landlord takes the position that you cannot break the lease, I would suggest you contact a local tenant-landlord attorney who can review your lease and will know the local laws and can advise you on the best way to proceed.
A lease is a formal legal document and you should be very careful and get proper legal advice before deciding that you will simply not honor this legally binding contract. I know that many tenants will just move out and are thoroughly convinced that the landlord has breached the lease but could find that the landlord disagrees and takes them to court seeking the balance of the lease payments — and then the tenant has to prove that the lease was indeed breached, and it can be difficult unless you have proper evidence.
I know you have video-camera evidence but that could be questioned in a court of law, so I feel it is much better if you have third-party verification of the noise complaints from either local law enforcement or a local municipal agency that handles noise complaints.
You indicate that you have contacted the apartment community’s security department several times per week so you can also see if they have been documenting your complaints in writing and see if you can get copies of these reports.
I have also heard that some tenants have successfully pursued small claims court actions directly against the other tenants for excessive noise. While this may be appealing on some level, it is certainly confrontational and could create a very stressful living environment. I would not recommend it, as you shouldn’t have to take the action yourself but should get the cooperation of your landlord or local code enforcement.
This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.”
E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News
See Robert Griswold’s feature, Is $450 Cleaning Charge Legal?
Is poor management a valid reason to break lease?by Robert Griswold
Q: I have a question about noise. I live on the ground floor of a four-story “luxury” apartment community. We have a “quiet hours” clause written in all of our leases that states residents must be quiet from 10 p.m. to 6 a.m. The tenants who just moved in above me, a family of four, make a lot of noise between 11 p.m. and 2 a.m. almost every night.
I’ve informed the landlord and even bought a video camera to record the noises along with the times. I’ve shown several tapes to the landlord and he agrees that the noises (which include children screaming, running around, thumping, thuds and loud banging noises, in addition to foot traffic) are excessive. However, the tenants have continued virtually unabated with their noise-making.
What do I do if the landlord is unwilling or unable to stop them from waking me up in the middle of the night? I usually have to call security three nights a week. I have more than six months left on my current lease, but do I have grounds to break my lease early? Can I ask that they be given an eviction notice? Do I have grounds for breaking the lease early without penalty? For the last two months I haven’t been getting much sleep and I don’t know what to do.
A: One of the most prevalent complaints received by landlords is about the noise level created by another tenant. Such complaints are very challenging and a source of frustration for both landlords and tenants. A certain amount of noise is expected and must be tolerated when living in a multifamily apartment community. However, tenants need to be courteous and considerate of their neighbors.
Noise complaints are one of those issues that I believe require an escalating level of response. Ideally, just contacting your neighbor directly and asking them to be courteous should resolve the matter. But if that doesn’t work, then you were correct in contacting the landlord to see if he can intervene. The landlord already has a “quiet hours” policy so he certainly is aware of this issue and seems to agree that excessive noise is unacceptable.
The first step by the landlord or onsite property manager would be to make a phone call and ask the tenant directly but politely to be sensitive to others and keep the noise down as much as possible. If that doesn’t work, then the landlord should make a written formal request of your upstairs neighbor to cease and desist from any activity that could be disruptive. This written notice should be on a proper legal Notice of Breach of Lease form and cite the failure of the tenant to abide by the “quiet hours” policy.
If all else fails, you may want to contact your local municipality to see if it has noise ordinances, and make a formal written complaint. Many times these policies will require more than a single incident of excessive noise before they will take action. I have also seen municipal policies requiring that at least two or more neighbors be willing to file a formal complaint before the municipality will formally investigate the alleged noise violation.
If you are not able to resolve the issue with any of the above methods and are still interested in breaking your lease, then you should talk to your manager and point out that you believe the landlord has breached the lease agreement by failing to enforce their own “quiet hours” policy. You may find that the landlord is agreeable and will let you mutually agree to break the lease. However, if the landlord takes the position that you cannot break the lease, I would suggest you contact a local tenant-landlord attorney who can review your lease and will know the local laws and can advise you on the best way to proceed.
A lease is a formal legal document and you should be very careful and get proper legal advice before deciding that you will simply not honor this legally binding contract. I know that many tenants will just move out and are thoroughly convinced that the landlord has breached the lease but could find that the landlord disagrees and takes them to court seeking the balance of the lease payments — and then the tenant has to prove that the lease was indeed breached, and it can be difficult unless you have proper evidence.
I know you have video-camera evidence but that could be questioned in a court of law, so I feel it is much better if you have third-party verification of the noise complaints from either local law enforcement or a local municipal agency that handles noise complaints.
You indicate that you have contacted the apartment community’s security department several times per week so you can also see if they have been documenting your complaints in writing and see if you can get copies of these reports.
I have also heard that some tenants have successfully pursued small claims court actions directly against the other tenants for excessive noise. While this may be appealing on some level, it is certainly confrontational and could create a very stressful living environment. I would not recommend it, as you shouldn’t have to take the action yourself but should get the cooperation of your landlord or local code enforcement.
This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of “Property Management for Dummies” and “Property Management Kit for Dummies” and co-author of “Real Estate Investing for Dummies.”
E-mail your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.Copyright 2009 Inman News
See Robert Griswold’s feature, Is $450 Cleaning Charge Legal?
Monday, August 17, 2009
Sunday, August 16, 2009
Become a Pet Friendly Environment
An Owner’s Best Friend
by Mindy Grill
Offering a pet-friendly environment is one way owners can attract and retain residents for the long term.
The stains, smells and noise can convince any apartment owner to avoid leasing to residents with pets. But by properly managing policies to allow animals into communities, apartment owners can make these pets their best friends.
Apartment owners who successfully implement pet policies will be pleased with residents’ renewal rates, along with their willingness to abide by the rules. Meanwhile, resident animal owners have been shown to take pride in maintaining the conditions of their apartment homes while treating their neighbors respectfully.
The unique bond that is created among animal owners helps to foster a sense of community among all residents and invaluable word-of-mouth marketing for pet-friendly communities. The results can be greater occupancy, improved cash flow and hardly a “zoo-like” atmosphere.
“I used to not allow pets at my communities, but eventually realized that I was losing almost half of my prospective resident traffic,” said Jim Stewart, President, Stewart Properties Inc., St. Louis, who spoke as part of a panel discussion on Independent Rental Owner (IRO) Best Practices at the 2008 NAA Education Conference & Exposition in June.
Many medium- to large-sized owners and management companies also have benefited from effective pet policies. Kettler Management, a McLean, Va.-based firm that serves the mid-Atlantic region, accepts pets at all of its communities. It limits breeds, not size.
“Residents who are willing to pay for their pets will take care of them,” said Cindy Clare, CPM, President, Kettler. “We have not had problems with noise or damage to the apartments any more than we do with residents that don’t have pets. It is a great source of ancillary income. We also have found a great sense of community from our pet owners and we do believe they stay longer.”
Surveys indicate that pets and apartments are ideal mates. Recent national results from numerous surveys show more than two-thirds of residents own pets. Some find that figure at more than 80 percent.
Stewart, who now allows pets at some of his communities, has a policy based on breed, not weight.
“Some of the smaller, yappy dogs can be a nuisance,” Stewart said. “But many larger ones, such as golden retrievers, are apartment-friendly because they mostly just quietly lay around.”
Stewart said one problem for owners is residents who try to sneak in pets. Leases should cover these violations, such as by listing a $100 pet fine and $10 a day thereafter. He said residents who are willing to fill out the addendum and pay the monthly fees will properly care for their pets.
Fees vary, and it’s not unusual for an apartment owner to charge a non-refundable pet deposit as well as a security deposit, plus charge an extra $15 to $50 per month in rent. (See “Pet Policy Particulars,” at right, for other details about pet policies and lease language.)
Pampered PetsThe stronger sense of community at pet-friendly communities is created when owners take the extra step by appealing to their pet owners with specialized amenities and events. Communities have hosted pet Halloween costume parades, offered goodie bags, arranged for pets to be photographed next to Santa Claus, hosted pet pool parties with doggie hot dogs and hamburgers on the menu and designated buildings as “pet-only.”
Pet-owner residents also form positive cliques within the community. “The majority of pet owners tend to be responsible people and want a clean environment,” said Valerie Covarrubias, Vice President, Corporate Communications, Riverstone Residential, A CAS Partners Company, Dallas. She said residents often remind each other to pick up after their dogs, so a lot of potential pet resident and non-pet resident complaints are solved without management being involved.
Stewart converted the under-utilized community tennis courts at some of his communities into fenced-in dog runs. When pets get dirty after being outside, pet owners can visit the indoor pet grooming area, which Stewart installed for approximately $10,000 at one of his communities. “It’s nothing more than a bathtub against a wall,” Stewart said. “But the owners—and their pets—love it.”
IRO Greg Guerrero, Apartment Services Company, Tulsa, Okla., said his communities offer most of the typical amenities—swimming pool, park, and playground and fitness room. “But the No. 1 amenity at our communities is the dog run,” he said during the NAA Education Conference session. “It’s really quite simple—just a chain-link fence built over a 50x100 foot area.”
Make Them StayTammy Kotula, Public Relations and Promotions Manager for Apartments.com, said that, according to a survey her company conducted in March 2007, more than one-third of respondents find it difficult to locate an apartment that accepts their pets. And 14 percent of the pet owners surveyed said a community’s pet policy is the first thing they consider when visiting and selecting an apartment.
One survey respondent said, “I love having a pet in my apartment because it feels more like home. The people in the entire building seem nicer and friendlier since the pets also brighten up the common areas.”
Stewart said that many residents treat their pets as if they are their children. “They won’t move anywhere without them,” he said. “So if they are happy in their apartments, they will stay longer.”
Mindy McCorkle, Operations Manager, Crosland, Charlotte, N.C., said that given this challenging economic environment, many residents are identifying those “nice-to-have” amenities that they can afford to live without. “But for pet owners, pet-friendly communities are must-haves,” she said.
Covarrubias said Riverstone Residential measures the effectiveness of its pet policies with surveys as well as its residents’ positive comments.
“It’s easy to quantify how many residents happily come into our management offices to chat with our associates who have a treat for their pets,” she said.
Diana Pittro, Executive Vice President, RMK Management, Chicago, said communities in her 9,000-unit portfolio are divided into those that do not allow pets, sites that only take cats and 30 percent that allow dogs and cats.
“Allowing dogs will keep residents longer, as they realize they don’t have to buy a home in order to own a pet,” Pittro said. “Allowing cats is generally the ideal way to go for a high-rise or a site with more empty-nesters. Cats are easy to maintain, but they do more damage to drywall and carpets.”
Marketing IdeasApartment owners should consider the following policies and events at their communities.
Doggie Adoption Day is a pet-friendly community marketing idea to consider that will bring positive publicity to a community and help animals in need, said Lisa Trosien of apartmentmarketing blog.com. Contact the local Humane Society or animal shelter and have it bring dogs for adoption. Make sure the shelter knows the community’s policies regarding weights and breeds. Communities also can try to secure public service announcements on local radio and television stations about the event.
Hire a professional pet groomer to visit the community and provide free services to residents’ pets.
hare fliers about pet-friendly communities at local veterinarians’ offices and pet stores. Allow residents who bring in the fliers to receive reduced pet deposits and/or pet fees.
Stewart Properties has a link on his Web sites marked “pets,” where residents and prospective residents can not only see what the communities have to offer four-legged friends, but also can view pictures of residents with the communities’ “Pets of the Month.”
Some owners are marketing their apartment communities as “no-pet” communities to entice residents who are either allergic or fearful of animals.
Mindy Grill is a freelance writer in Melville, N.Y. NAA’s Paul R. Bergeron III contributed additional reporting.
Box:
Pet Policy ParticularsMost communities require residents to complete forms that include pet information such as its breed, weight, veterinarian name and whether the animal is up-to-date on its inoculations. Communities may require that all pets be spayed or neutered
Some communities ban specific breeds, such as pit bulls or rottweilers, and impose weight restrictions. Some communities allow only dogs and cats and exclude “exotic” animals, such as ferrets.
Communities should hold pet owner orientation events, complete with a well-drafted pet lease addendum and policies presented to pet owners upon the signing of their leases. Here, language that defines the penalties of violating the policies (size, number, type), in-unit and common-ground clean-up guidelines, city codes about noise, leash laws and the presence of animals on decks or patios should be explained. Also worth considering for inclusion in the lease is the apartment owner’s right to remove the pet permanently without the resident terminating the lease.
Promote cleanliness by giving clean-up bags to owners during this meeting. Owners also should consider including the right to add additional charges if subsequent pet odor, damage or fleas occur immediately after a resident has moved out.
One owner experienced added costs for sod replacement when dog owners did not walk the animals in designated areas. The firm’s policy now allows it to charge the resident back for this, especially if it is an area right outside his or her patio door.
Sources: Mary Gwyn, CPM, Apartment Dynamics, and various.
Box:
Pets on the WebApartment search Web site PeopleWithPets, which connects pet owners to pet-friendly communities with vacancies, receives more than 1.5 million hits each month, according to site owner Alex Dobrow.
Apartments.com reported 11 million searches for pet friendly apartments on its Web site in 2008. Its survey said the number of communities that allow pets in the categories of dog, large dog and cat increased approximately 9.25 percent in 2008 over 2007, with a noticeable increase in those allowing large dogs. —M.G.
by Mindy Grill
Offering a pet-friendly environment is one way owners can attract and retain residents for the long term.
The stains, smells and noise can convince any apartment owner to avoid leasing to residents with pets. But by properly managing policies to allow animals into communities, apartment owners can make these pets their best friends.
Apartment owners who successfully implement pet policies will be pleased with residents’ renewal rates, along with their willingness to abide by the rules. Meanwhile, resident animal owners have been shown to take pride in maintaining the conditions of their apartment homes while treating their neighbors respectfully.
The unique bond that is created among animal owners helps to foster a sense of community among all residents and invaluable word-of-mouth marketing for pet-friendly communities. The results can be greater occupancy, improved cash flow and hardly a “zoo-like” atmosphere.
“I used to not allow pets at my communities, but eventually realized that I was losing almost half of my prospective resident traffic,” said Jim Stewart, President, Stewart Properties Inc., St. Louis, who spoke as part of a panel discussion on Independent Rental Owner (IRO) Best Practices at the 2008 NAA Education Conference & Exposition in June.
Many medium- to large-sized owners and management companies also have benefited from effective pet policies. Kettler Management, a McLean, Va.-based firm that serves the mid-Atlantic region, accepts pets at all of its communities. It limits breeds, not size.
“Residents who are willing to pay for their pets will take care of them,” said Cindy Clare, CPM, President, Kettler. “We have not had problems with noise or damage to the apartments any more than we do with residents that don’t have pets. It is a great source of ancillary income. We also have found a great sense of community from our pet owners and we do believe they stay longer.”
Surveys indicate that pets and apartments are ideal mates. Recent national results from numerous surveys show more than two-thirds of residents own pets. Some find that figure at more than 80 percent.
Stewart, who now allows pets at some of his communities, has a policy based on breed, not weight.
“Some of the smaller, yappy dogs can be a nuisance,” Stewart said. “But many larger ones, such as golden retrievers, are apartment-friendly because they mostly just quietly lay around.”
Stewart said one problem for owners is residents who try to sneak in pets. Leases should cover these violations, such as by listing a $100 pet fine and $10 a day thereafter. He said residents who are willing to fill out the addendum and pay the monthly fees will properly care for their pets.
Fees vary, and it’s not unusual for an apartment owner to charge a non-refundable pet deposit as well as a security deposit, plus charge an extra $15 to $50 per month in rent. (See “Pet Policy Particulars,” at right, for other details about pet policies and lease language.)
Pampered PetsThe stronger sense of community at pet-friendly communities is created when owners take the extra step by appealing to their pet owners with specialized amenities and events. Communities have hosted pet Halloween costume parades, offered goodie bags, arranged for pets to be photographed next to Santa Claus, hosted pet pool parties with doggie hot dogs and hamburgers on the menu and designated buildings as “pet-only.”
Pet-owner residents also form positive cliques within the community. “The majority of pet owners tend to be responsible people and want a clean environment,” said Valerie Covarrubias, Vice President, Corporate Communications, Riverstone Residential, A CAS Partners Company, Dallas. She said residents often remind each other to pick up after their dogs, so a lot of potential pet resident and non-pet resident complaints are solved without management being involved.
Stewart converted the under-utilized community tennis courts at some of his communities into fenced-in dog runs. When pets get dirty after being outside, pet owners can visit the indoor pet grooming area, which Stewart installed for approximately $10,000 at one of his communities. “It’s nothing more than a bathtub against a wall,” Stewart said. “But the owners—and their pets—love it.”
IRO Greg Guerrero, Apartment Services Company, Tulsa, Okla., said his communities offer most of the typical amenities—swimming pool, park, and playground and fitness room. “But the No. 1 amenity at our communities is the dog run,” he said during the NAA Education Conference session. “It’s really quite simple—just a chain-link fence built over a 50x100 foot area.”
Make Them StayTammy Kotula, Public Relations and Promotions Manager for Apartments.com, said that, according to a survey her company conducted in March 2007, more than one-third of respondents find it difficult to locate an apartment that accepts their pets. And 14 percent of the pet owners surveyed said a community’s pet policy is the first thing they consider when visiting and selecting an apartment.
One survey respondent said, “I love having a pet in my apartment because it feels more like home. The people in the entire building seem nicer and friendlier since the pets also brighten up the common areas.”
Stewart said that many residents treat their pets as if they are their children. “They won’t move anywhere without them,” he said. “So if they are happy in their apartments, they will stay longer.”
Mindy McCorkle, Operations Manager, Crosland, Charlotte, N.C., said that given this challenging economic environment, many residents are identifying those “nice-to-have” amenities that they can afford to live without. “But for pet owners, pet-friendly communities are must-haves,” she said.
Covarrubias said Riverstone Residential measures the effectiveness of its pet policies with surveys as well as its residents’ positive comments.
“It’s easy to quantify how many residents happily come into our management offices to chat with our associates who have a treat for their pets,” she said.
Diana Pittro, Executive Vice President, RMK Management, Chicago, said communities in her 9,000-unit portfolio are divided into those that do not allow pets, sites that only take cats and 30 percent that allow dogs and cats.
“Allowing dogs will keep residents longer, as they realize they don’t have to buy a home in order to own a pet,” Pittro said. “Allowing cats is generally the ideal way to go for a high-rise or a site with more empty-nesters. Cats are easy to maintain, but they do more damage to drywall and carpets.”
Marketing IdeasApartment owners should consider the following policies and events at their communities.
Doggie Adoption Day is a pet-friendly community marketing idea to consider that will bring positive publicity to a community and help animals in need, said Lisa Trosien of apartmentmarketing blog.com. Contact the local Humane Society or animal shelter and have it bring dogs for adoption. Make sure the shelter knows the community’s policies regarding weights and breeds. Communities also can try to secure public service announcements on local radio and television stations about the event.
Hire a professional pet groomer to visit the community and provide free services to residents’ pets.
hare fliers about pet-friendly communities at local veterinarians’ offices and pet stores. Allow residents who bring in the fliers to receive reduced pet deposits and/or pet fees.
Stewart Properties has a link on his Web sites marked “pets,” where residents and prospective residents can not only see what the communities have to offer four-legged friends, but also can view pictures of residents with the communities’ “Pets of the Month.”
Some owners are marketing their apartment communities as “no-pet” communities to entice residents who are either allergic or fearful of animals.
Mindy Grill is a freelance writer in Melville, N.Y. NAA’s Paul R. Bergeron III contributed additional reporting.
Box:
Pet Policy ParticularsMost communities require residents to complete forms that include pet information such as its breed, weight, veterinarian name and whether the animal is up-to-date on its inoculations. Communities may require that all pets be spayed or neutered
Some communities ban specific breeds, such as pit bulls or rottweilers, and impose weight restrictions. Some communities allow only dogs and cats and exclude “exotic” animals, such as ferrets.
Communities should hold pet owner orientation events, complete with a well-drafted pet lease addendum and policies presented to pet owners upon the signing of their leases. Here, language that defines the penalties of violating the policies (size, number, type), in-unit and common-ground clean-up guidelines, city codes about noise, leash laws and the presence of animals on decks or patios should be explained. Also worth considering for inclusion in the lease is the apartment owner’s right to remove the pet permanently without the resident terminating the lease.
Promote cleanliness by giving clean-up bags to owners during this meeting. Owners also should consider including the right to add additional charges if subsequent pet odor, damage or fleas occur immediately after a resident has moved out.
One owner experienced added costs for sod replacement when dog owners did not walk the animals in designated areas. The firm’s policy now allows it to charge the resident back for this, especially if it is an area right outside his or her patio door.
Sources: Mary Gwyn, CPM, Apartment Dynamics, and various.
Box:
Pets on the WebApartment search Web site PeopleWithPets, which connects pet owners to pet-friendly communities with vacancies, receives more than 1.5 million hits each month, according to site owner Alex Dobrow.
Apartments.com reported 11 million searches for pet friendly apartments on its Web site in 2008. Its survey said the number of communities that allow pets in the categories of dog, large dog and cat increased approximately 9.25 percent in 2008 over 2007, with a noticeable increase in those allowing large dogs. —M.G.
Friday, August 14, 2009
Landlord Quick Tip
Landlord Quick Tip
Quick Tip #16: Have Your People Call My People
If your rental unit is carpeted, establish a relationship with a carpet cleaning service– someone that you like and trust to do a good job, before your next tenant moves in.
Then, encourage your tenant to use your preferred carpet cleaning company to do the move-out cleaning.
You know your unit will be clean.
The carpeting won’t be damaged by incompetence.
You can call and negotiate with the company if the carpeting needs re-touched while the job is still under warranty.
This way your new tenant can move in on time, and you can avoid a security deposit dispute with the previous tenant.
(Note: If you write this requirement into your lease, be sure to make it clear that the carpet cleaning is still the tenant’s responsibility– regardless of who they use.)
Quick Tip #16: Have Your People Call My People
If your rental unit is carpeted, establish a relationship with a carpet cleaning service– someone that you like and trust to do a good job, before your next tenant moves in.
Then, encourage your tenant to use your preferred carpet cleaning company to do the move-out cleaning.
You know your unit will be clean.
The carpeting won’t be damaged by incompetence.
You can call and negotiate with the company if the carpeting needs re-touched while the job is still under warranty.
This way your new tenant can move in on time, and you can avoid a security deposit dispute with the previous tenant.
(Note: If you write this requirement into your lease, be sure to make it clear that the carpet cleaning is still the tenant’s responsibility– regardless of who they use.)
Don't Get Suckered by These Applicants
You May be Desperate, But Don’t Let “Cash in Hand” Distract You
by Eric Boyd
I got a call on one of my vacant, available rentals today. The caller drove by the property, saw the sign, and called. They wanted to see it “right now”. I told them I couldn’t get over there to show it until 4pm, as I have other engagements until then. They said, “Well, we’re headed back to South Carolina to take care of some business so that wouldn’t work.” I apologized, and encouraged them to take a look around the outside and peek in the windows.A few minutes later, the caller’s wife called and said they like it, and asked what they need to do to rent the property.
I said that I could give them an application for them to complete. Then, I would conduct credit and background checks, and employment and rental verification.
She quipped that they didn’t have a previous landlord, since they own their house in SC. She then said, they were trying to get this done today, so they can go back to SC. They wanted to get this done before school starts, so they can get their kids registered. She said, “We have cash in hand, and are ready to get this doneI politely responded to her, and let her know that we don’t rush our tenant screening process. I stated that it is our duty to the property owner to ensure that tenants are properly screened, with thorough credit and background checks, and employment and income verifications. I shared that it has been our experience that taking shortcuts in the screening process leads to problems with tenancy, down the road. So, we avoid those shortcuts, at every opportunity. She thanked me, and we ended the call.In today’s housing market, there seems to be surplus of rental property. Because of this, it is taking much longer to get property rented. And, if you’re properly screening your tenants, it could take even longer to get it rented. So, desperation may set in. If you feel like you’re getting desperate, don’t let “Cash in hand” distract you from doing your due diligence. If you do take this shortcut, the upfront money you get, could cost you double or triple that amount down the road. This cost could come in the way of lost rent, or even worse, damages to your property.The caller said they own a house in South Carolina, but they’re trying to rent here in Jacksonville, Florida, 4-5 hours away. If they have a house in SC, why are they moving here, and what are they going to do with the house in SC? If I didn’t screen them, I wouldn’t find out if they have a mortgage on that house, which probably requires monthly payments. Sure, they may have the means to cover a mortgage payment and a rent payment somewhere else. But, if I didn’t screen them, then how will I be able to determine their income? How will I know if they’re 6 months behind on their mortgage? How will I know if they just filed bankruptcy? How will I know if they’re bouncing $30 checks at the grocery store? If I don’t screen them, I won’t know these things.I’m generally trusting of people. But, having been through the tenant screening process many times, I realize that people DO TELL LIES. Fortunately, we landlords and property managers don’t have to fall victim to these lies. Professional property managers have access to tenant screening services, which reveal the truth about tenant applicants’ credit history, debt status, and civil/criminal judgments. Property managers can also verify applicants’ employment and rental history. This information, combined with careful analysis of the provided data can help to place the best possible tenant in your rental property.In summary, don’t succumb to desperation. Don’t allow a tenant prospect to force you to alter your normal screening processes. Don’t let the chance at “cash in hand” to steer you from your due diligence. SCREEN THOSE TENANTS!!
by Eric Boyd
I got a call on one of my vacant, available rentals today. The caller drove by the property, saw the sign, and called. They wanted to see it “right now”. I told them I couldn’t get over there to show it until 4pm, as I have other engagements until then. They said, “Well, we’re headed back to South Carolina to take care of some business so that wouldn’t work.” I apologized, and encouraged them to take a look around the outside and peek in the windows.A few minutes later, the caller’s wife called and said they like it, and asked what they need to do to rent the property.
I said that I could give them an application for them to complete. Then, I would conduct credit and background checks, and employment and rental verification.
She quipped that they didn’t have a previous landlord, since they own their house in SC. She then said, they were trying to get this done today, so they can go back to SC. They wanted to get this done before school starts, so they can get their kids registered. She said, “We have cash in hand, and are ready to get this doneI politely responded to her, and let her know that we don’t rush our tenant screening process. I stated that it is our duty to the property owner to ensure that tenants are properly screened, with thorough credit and background checks, and employment and income verifications. I shared that it has been our experience that taking shortcuts in the screening process leads to problems with tenancy, down the road. So, we avoid those shortcuts, at every opportunity. She thanked me, and we ended the call.In today’s housing market, there seems to be surplus of rental property. Because of this, it is taking much longer to get property rented. And, if you’re properly screening your tenants, it could take even longer to get it rented. So, desperation may set in. If you feel like you’re getting desperate, don’t let “Cash in hand” distract you from doing your due diligence. If you do take this shortcut, the upfront money you get, could cost you double or triple that amount down the road. This cost could come in the way of lost rent, or even worse, damages to your property.The caller said they own a house in South Carolina, but they’re trying to rent here in Jacksonville, Florida, 4-5 hours away. If they have a house in SC, why are they moving here, and what are they going to do with the house in SC? If I didn’t screen them, I wouldn’t find out if they have a mortgage on that house, which probably requires monthly payments. Sure, they may have the means to cover a mortgage payment and a rent payment somewhere else. But, if I didn’t screen them, then how will I be able to determine their income? How will I know if they’re 6 months behind on their mortgage? How will I know if they just filed bankruptcy? How will I know if they’re bouncing $30 checks at the grocery store? If I don’t screen them, I won’t know these things.I’m generally trusting of people. But, having been through the tenant screening process many times, I realize that people DO TELL LIES. Fortunately, we landlords and property managers don’t have to fall victim to these lies. Professional property managers have access to tenant screening services, which reveal the truth about tenant applicants’ credit history, debt status, and civil/criminal judgments. Property managers can also verify applicants’ employment and rental history. This information, combined with careful analysis of the provided data can help to place the best possible tenant in your rental property.In summary, don’t succumb to desperation. Don’t allow a tenant prospect to force you to alter your normal screening processes. Don’t let the chance at “cash in hand” to steer you from your due diligence. SCREEN THOSE TENANTS!!
Don't Break the Bank With Remodel
Don’t Break the Bank With Remodel
Cost overruns more common than many thinkBernice Ross, Inman News
Whether you’re thinking about building or perhaps just remodeling your current property, there’s one mistake almost everyone makes — and it’s a costly one.
Back in the mid-1980s, I was one of three listing agents on an 83-lot subdivision called “The Summit Above Beverly Hills.” (You might have seen it in the tabloids — it’s where Britney Spears lives currently.) I decided to build a home there, and lived in it for 11 years. Recently, we just finished building our current home plus doing a major remodel on another property we own.On virtually every single custom home at the Summit, as well as on my own properties, I’ve seen the same pattern repeatedly. The final cost of the project was always 30 to 40 percent higher than what we initially budgeted. When you start a major building project, you’ll hear stories about cost overruns. The builder will warn you about making changes once the plan is complete. You will vow it won’t happen to you. Don’t fool yourself — you will probably go over budget just like everyone else.
What causes cost overruns? In the case of my Summit house, my lot was compacted fill. The building inspector decided that we needed 12 caissons to anchor the house more securely in an earthquake. The result was that the architect had to redraw the plans. We then had to go back to the city for approval. The additional cost was $12,000. While I wasn’t happy about this expense at the time, when the Northridge Earthquake struck in 1994, the only obvious damage was a crack in the marble on the powder room floor. The caissons did their job. Later inspections revealed a crack in the foundation and some twisting in the doorjambs. Given that nearby properties collapsed, I was happy my house was still standing.
Another common way that people go over budget is with upgrades. When we built our current house, we wanted to add “cans” in addition to the chandeliers and other overhead lights. The cans weren’t that expensive — about $40 apiece. What we didn’t figure in was the additional time that it would take the electrician to install the lights. What appeared to be a relatively inexpensive item ended up costing about three times more than we anticipated.
When you’re building a custom home, your radar is attuned to all the new gadgets and doodads that you can include in your house. For example, you may have planned on having a media room but didn’t realize that you would need special wiring to accommodate the cutting-edge system you just ordered. Now the builder has to open up the walls to do the installation. You may be having allergy problems and hear about a filtration system that removes most of the dust and allergens from the air. It’s not that much money in the scheme of things — it’s just that all these changes add up.
It’s common for a custom home to take 18 to 24 months to build. Wood, concrete and steel all fluctuate in price. Depending upon the type of contract the owner signs, the costs are either passed through to the owner or to the builder. If the builder agreed to a fixed price, you can bet that he or she will cut corners elsewhere to complete the house within the original budget.
One of the most expensive mistakes owners can make is deciding to rip out something after it has been installed. For example, the granite we ordered for our master bath was no longer available. When they installed our second choice, the granite didn’t match the cabinets. In this case, not only would we have incurred a $500 change fee, but we would also have to pay to rip out the granite we had selected. This meant we would have paid for two sets of granite countertops, two sets of installations, plus the removal of the first set of countertops. Fortunately, once the floors were installed, we realized that the cabinetmakers had stained the cabinets with the wrong stain. The builder had to pay for that error.
While new houses have their problems, remodels can be even more costly. The older the house is, the more likely there will be unexpected surprises that will take you over budget.
For example, the house we recently remodeled was 50 years old. We wanted to update the kitchen and add a master bedroom and bath. We knew the horizontal pipes needed replacing because they were galvanized steel. What we didn’t realize was that the vertical pipes needed replacing as well. When we replaced those pipes, we had to replace the sewer lines since they couldn’t handle the additional flow of water from the new plumbing. We also wanted to install a dishwasher, which required a new electrical box. That project went over budget by almost 100 percent.
To keep costs down, investigate thoroughly before committing to your final plans. If possible, avoid doing change orders. The bottom line — if you’re like everyone else, you will go over your budget by 30 to 40 percent — budget for it!
Cost overruns more common than many thinkBernice Ross, Inman News
Whether you’re thinking about building or perhaps just remodeling your current property, there’s one mistake almost everyone makes — and it’s a costly one.
Back in the mid-1980s, I was one of three listing agents on an 83-lot subdivision called “The Summit Above Beverly Hills.” (You might have seen it in the tabloids — it’s where Britney Spears lives currently.) I decided to build a home there, and lived in it for 11 years. Recently, we just finished building our current home plus doing a major remodel on another property we own.On virtually every single custom home at the Summit, as well as on my own properties, I’ve seen the same pattern repeatedly. The final cost of the project was always 30 to 40 percent higher than what we initially budgeted. When you start a major building project, you’ll hear stories about cost overruns. The builder will warn you about making changes once the plan is complete. You will vow it won’t happen to you. Don’t fool yourself — you will probably go over budget just like everyone else.
What causes cost overruns? In the case of my Summit house, my lot was compacted fill. The building inspector decided that we needed 12 caissons to anchor the house more securely in an earthquake. The result was that the architect had to redraw the plans. We then had to go back to the city for approval. The additional cost was $12,000. While I wasn’t happy about this expense at the time, when the Northridge Earthquake struck in 1994, the only obvious damage was a crack in the marble on the powder room floor. The caissons did their job. Later inspections revealed a crack in the foundation and some twisting in the doorjambs. Given that nearby properties collapsed, I was happy my house was still standing.
Another common way that people go over budget is with upgrades. When we built our current house, we wanted to add “cans” in addition to the chandeliers and other overhead lights. The cans weren’t that expensive — about $40 apiece. What we didn’t figure in was the additional time that it would take the electrician to install the lights. What appeared to be a relatively inexpensive item ended up costing about three times more than we anticipated.
When you’re building a custom home, your radar is attuned to all the new gadgets and doodads that you can include in your house. For example, you may have planned on having a media room but didn’t realize that you would need special wiring to accommodate the cutting-edge system you just ordered. Now the builder has to open up the walls to do the installation. You may be having allergy problems and hear about a filtration system that removes most of the dust and allergens from the air. It’s not that much money in the scheme of things — it’s just that all these changes add up.
It’s common for a custom home to take 18 to 24 months to build. Wood, concrete and steel all fluctuate in price. Depending upon the type of contract the owner signs, the costs are either passed through to the owner or to the builder. If the builder agreed to a fixed price, you can bet that he or she will cut corners elsewhere to complete the house within the original budget.
One of the most expensive mistakes owners can make is deciding to rip out something after it has been installed. For example, the granite we ordered for our master bath was no longer available. When they installed our second choice, the granite didn’t match the cabinets. In this case, not only would we have incurred a $500 change fee, but we would also have to pay to rip out the granite we had selected. This meant we would have paid for two sets of granite countertops, two sets of installations, plus the removal of the first set of countertops. Fortunately, once the floors were installed, we realized that the cabinetmakers had stained the cabinets with the wrong stain. The builder had to pay for that error.
While new houses have their problems, remodels can be even more costly. The older the house is, the more likely there will be unexpected surprises that will take you over budget.
For example, the house we recently remodeled was 50 years old. We wanted to update the kitchen and add a master bedroom and bath. We knew the horizontal pipes needed replacing because they were galvanized steel. What we didn’t realize was that the vertical pipes needed replacing as well. When we replaced those pipes, we had to replace the sewer lines since they couldn’t handle the additional flow of water from the new plumbing. We also wanted to install a dishwasher, which required a new electrical box. That project went over budget by almost 100 percent.
To keep costs down, investigate thoroughly before committing to your final plans. If possible, avoid doing change orders. The bottom line — if you’re like everyone else, you will go over your budget by 30 to 40 percent — budget for it!
Landlord Charges Extra for Lawncare
Landlord Charges Extra For Lawn Care
Rent it Right
Janet Portman, Inman News
Q: We rent a single-family home. When we moved in, I brought my own lawnmower and weed whacker, and used them to take care of the lawn. Now they’re broken, and the landlord refuses to purchase new ones. I was under the impression that the lawn and garden, if not maintained by the landlords, was to be maintained by the tenant but that the landlords had to provide the equipment to do so. Am I wrong? Now the landlords are claiming that if we don’t maintain the yard, they’ll hire a gardener and add the cost to our rent. –Paul P.
A: From the sound of things, a lot of unquestioned assumptions underlie both sides of this argument. If nothing else, your story illustrates why it’s a good idea to put all essential terms of a rental in writing.
First, here’s the lay of the land regarding maintenance. Landlords are responsible for maintaining the structural and common parts of rental property. Even if they delegate some of these tasks to the tenant (which is common in single-family rentals), they remain ultimately responsible if the tenant does a poor job.
For instance, property owners may be cited for maintaining a nuisance if the property becomes so run down that it attracts vandals, squatters, vermin or otherwise just looks awful, even if the lease specifies that the tenants will handle upkeep. Further, owners may be liable if someone is injured because the property is unmaintained and dangerous. But I’m not aware of any state law that dictates who must do yard work.
When it comes to who does what, landlords and tenants work it out between themselves. Aware that they are ultimately responsible for the property, landlords often don’t trust tenants to do a good job, and hire a gardening service instead. If they want to charge for this service, they factor it in when setting the rent — before the lease is signed. And just as frequently, tenants are happy not to be bothered with the chore.
On the other hand, residents who are capable gardeners (and want to save a bit on the rent) may ask to take on the job, which savvy landlords will agree to for a while, as a sort of probationary period. When the landlord sees that the lawn hasn’t turned brown, the shrubs are trimmed, and the leaves swept regularly, the arrangement becomes final. As to who supplies the tools, that’s something they negotiate.
Unfortunately, you apparently took on the job and supplied the tools without discussing whether the work and the equipment you supplied were considered part of the deal, as a form of rent. This might actually work against you. Sometimes, a person’s actions over time take on the legal force of expressed intentions. For example, landlords frequently offer rentals with appliances, and make minor repairs from time to time, but balk at expensive repairs. Tenants argue — correctly — that although nothing was said in the lease about repairing an appliance, the fact that the landlord regularly maintained it shows that everyone intended for the landlord to be responsible for the appliance, whether it needs a cheap hose replacement or an expensive rebuilt motor.
In your case, having taken on the yard work and supplied the tools, you may have implicitly signaled to your landlord that you were willing to do both as part of the deal — and when the tools wore out, you would be willing to buy new ones.
This theory isn’t a sure winner for the landlord, however, but that doesn’t mean that you’ll definitely prevail, either. For example, suppose you stop keeping up the yard, the landlord begins charging you for a gardening service, and you refuse to pay. The landlord tries to evict you for nonpayment of rent, and after a lot of time and expense, one of you wins.
Or, suppose you purchase the tools, deduct their cost from the rent, and the landlord sues to evict for nonpayment of rent. After a lot of time and expense, one of you wins. Again, you stop tending the yard, things deteriorate badly, and the landlord sues to evict you for not fulfilling your obligations. After a lot of time and expense, one of you wins. You see the pattern — nothing is certain but wasted time and expense, plus a smudge on your credit for having been involved in an eviction (even if you win, in some states).
The wise course for both of you is to get yourselves into mediation if you can’t resolve the problem on your own. Many cities and counties offer low- or no-cost mediation services for landlord-tenant disputes (in addition, small claims courts also offer mediation). A mediator will help the two of you reach a mutually agreeable solution (the mediator does not impose a resolution). When you add up the cost of protracted fighting in court and the consequences to you if you lose, the few hours you spend in mediation will look like a real bargain.
Rent it Right
Janet Portman, Inman News
Q: We rent a single-family home. When we moved in, I brought my own lawnmower and weed whacker, and used them to take care of the lawn. Now they’re broken, and the landlord refuses to purchase new ones. I was under the impression that the lawn and garden, if not maintained by the landlords, was to be maintained by the tenant but that the landlords had to provide the equipment to do so. Am I wrong? Now the landlords are claiming that if we don’t maintain the yard, they’ll hire a gardener and add the cost to our rent. –Paul P.
A: From the sound of things, a lot of unquestioned assumptions underlie both sides of this argument. If nothing else, your story illustrates why it’s a good idea to put all essential terms of a rental in writing.
First, here’s the lay of the land regarding maintenance. Landlords are responsible for maintaining the structural and common parts of rental property. Even if they delegate some of these tasks to the tenant (which is common in single-family rentals), they remain ultimately responsible if the tenant does a poor job.
For instance, property owners may be cited for maintaining a nuisance if the property becomes so run down that it attracts vandals, squatters, vermin or otherwise just looks awful, even if the lease specifies that the tenants will handle upkeep. Further, owners may be liable if someone is injured because the property is unmaintained and dangerous. But I’m not aware of any state law that dictates who must do yard work.
When it comes to who does what, landlords and tenants work it out between themselves. Aware that they are ultimately responsible for the property, landlords often don’t trust tenants to do a good job, and hire a gardening service instead. If they want to charge for this service, they factor it in when setting the rent — before the lease is signed. And just as frequently, tenants are happy not to be bothered with the chore.
On the other hand, residents who are capable gardeners (and want to save a bit on the rent) may ask to take on the job, which savvy landlords will agree to for a while, as a sort of probationary period. When the landlord sees that the lawn hasn’t turned brown, the shrubs are trimmed, and the leaves swept regularly, the arrangement becomes final. As to who supplies the tools, that’s something they negotiate.
Unfortunately, you apparently took on the job and supplied the tools without discussing whether the work and the equipment you supplied were considered part of the deal, as a form of rent. This might actually work against you. Sometimes, a person’s actions over time take on the legal force of expressed intentions. For example, landlords frequently offer rentals with appliances, and make minor repairs from time to time, but balk at expensive repairs. Tenants argue — correctly — that although nothing was said in the lease about repairing an appliance, the fact that the landlord regularly maintained it shows that everyone intended for the landlord to be responsible for the appliance, whether it needs a cheap hose replacement or an expensive rebuilt motor.
In your case, having taken on the yard work and supplied the tools, you may have implicitly signaled to your landlord that you were willing to do both as part of the deal — and when the tools wore out, you would be willing to buy new ones.
This theory isn’t a sure winner for the landlord, however, but that doesn’t mean that you’ll definitely prevail, either. For example, suppose you stop keeping up the yard, the landlord begins charging you for a gardening service, and you refuse to pay. The landlord tries to evict you for nonpayment of rent, and after a lot of time and expense, one of you wins.
Or, suppose you purchase the tools, deduct their cost from the rent, and the landlord sues to evict for nonpayment of rent. After a lot of time and expense, one of you wins. Again, you stop tending the yard, things deteriorate badly, and the landlord sues to evict you for not fulfilling your obligations. After a lot of time and expense, one of you wins. You see the pattern — nothing is certain but wasted time and expense, plus a smudge on your credit for having been involved in an eviction (even if you win, in some states).
The wise course for both of you is to get yourselves into mediation if you can’t resolve the problem on your own. Many cities and counties offer low- or no-cost mediation services for landlord-tenant disputes (in addition, small claims courts also offer mediation). A mediator will help the two of you reach a mutually agreeable solution (the mediator does not impose a resolution). When you add up the cost of protracted fighting in court and the consequences to you if you lose, the few hours you spend in mediation will look like a real bargain.
Converting Your Unit to Maximize Cashflow
Converting Your Unit To Maximize Cash Flow
by Michael Monteiro
Although converting a unit into a larger (or different) space may be cheaper than purchasing a new property that fits your expanding investment property needs, it’s nonetheless a huge undertaking, both in terms of logistics and expense. If you’re thinking about a conversion, make sure that you carefully consider three important questions: Why? When? How?
Why should I convert my unit?For the purposes of this blog, we’ll consider unit conversion in the context of creating more bedrooms (for example, converting a one-bedroom unit into a two-bedroom unit). The obvious reason for this sort of conversion is to increase your cash flow.
Examine rental rates in your area to determine how much more money can be generated by renting out a multi-bedroom unit. Also consider the type of tenants that are generally seeking rentals in your area. For example, if your demographic is college students (who generally like to rent with roommates) or families (who generally have more people and, therefore need more space), chances are you would benefit by offering units that are set up for more than one tenant or couple.
Research is essential. In some cases, multi-bedroom units may generate only slightly more rent that single-bedroom units. Also, consider the costs of the conversion and calculate if the additional rent will not only cover the renovation, but also generate a higher profit margin over time. Last but not least, when considering the costs of conversion, make sure you account for rent that will likely be lost (not only in the unit undergoing conversion, but potentially in other units as well) during the construction process.
When should I convert my unit?If you’re at a point where you feel as though your tenant pool has outgrown the spaces you are offering or if you’re looking to increase the value of an investment property, it may be time to consider a conversion. You may also want to think about converting units as an alternative to buying additional property. Particularly during periods when it’s a seller’s market, converting may actually be more profitable than purchasing a new property with larger units in the long-run.
There’s another element of the “when” equation to consider as well: What time of year is the best time to convert your units? If you live in a region with harsh weather or unpredictable patterns at certain times of the year, plan your construction schedule accordingly. The last thing you want to do is have the project extended (i.e., lose rental income) due to factors beyond your control. If you live in a more temperate climate and weather is not a factor, consult with local contractors to find out when their slow season is. This may well guarantee you more attention and better rates. Finally, timing your conversion around natural rental cycles such as a month when the majority of your leases expire or (if you rent to college students) summer break will help minimize income lost during the construction period.
How should I convert my unit?Conversion is one of those instances where you are definitely best to hire a professional. Even if you have the know-how to handle this undertaking on your own, chances are the process will move along much more efficiently with a professional on the job.
Any way you cut it, converting your units will be a significant expense. Make sure that you thoroughly research potential contractors, striking a balance between cost and quality. Not only do you want to find an affordable contractor, but you also want to make sure the work is done correctly and efficiently. Ask other property owners for referrals and look on dependable review sites such as Yelp. Also be sure that you talk to a few different contractors so you can carefully weigh different options and, ultimately, choose the one that works best for you.
Much like investing in a new property, converting your units involves a significant up-front expense that can pay off in spades in the long-run. Carefully consider your whys, whens, and hows before beginning the conversion process and you’ve already mastered half the battle.
by Michael Monteiro
Although converting a unit into a larger (or different) space may be cheaper than purchasing a new property that fits your expanding investment property needs, it’s nonetheless a huge undertaking, both in terms of logistics and expense. If you’re thinking about a conversion, make sure that you carefully consider three important questions: Why? When? How?
Why should I convert my unit?For the purposes of this blog, we’ll consider unit conversion in the context of creating more bedrooms (for example, converting a one-bedroom unit into a two-bedroom unit). The obvious reason for this sort of conversion is to increase your cash flow.
Examine rental rates in your area to determine how much more money can be generated by renting out a multi-bedroom unit. Also consider the type of tenants that are generally seeking rentals in your area. For example, if your demographic is college students (who generally like to rent with roommates) or families (who generally have more people and, therefore need more space), chances are you would benefit by offering units that are set up for more than one tenant or couple.
Research is essential. In some cases, multi-bedroom units may generate only slightly more rent that single-bedroom units. Also, consider the costs of the conversion and calculate if the additional rent will not only cover the renovation, but also generate a higher profit margin over time. Last but not least, when considering the costs of conversion, make sure you account for rent that will likely be lost (not only in the unit undergoing conversion, but potentially in other units as well) during the construction process.
When should I convert my unit?If you’re at a point where you feel as though your tenant pool has outgrown the spaces you are offering or if you’re looking to increase the value of an investment property, it may be time to consider a conversion. You may also want to think about converting units as an alternative to buying additional property. Particularly during periods when it’s a seller’s market, converting may actually be more profitable than purchasing a new property with larger units in the long-run.
There’s another element of the “when” equation to consider as well: What time of year is the best time to convert your units? If you live in a region with harsh weather or unpredictable patterns at certain times of the year, plan your construction schedule accordingly. The last thing you want to do is have the project extended (i.e., lose rental income) due to factors beyond your control. If you live in a more temperate climate and weather is not a factor, consult with local contractors to find out when their slow season is. This may well guarantee you more attention and better rates. Finally, timing your conversion around natural rental cycles such as a month when the majority of your leases expire or (if you rent to college students) summer break will help minimize income lost during the construction period.
How should I convert my unit?Conversion is one of those instances where you are definitely best to hire a professional. Even if you have the know-how to handle this undertaking on your own, chances are the process will move along much more efficiently with a professional on the job.
Any way you cut it, converting your units will be a significant expense. Make sure that you thoroughly research potential contractors, striking a balance between cost and quality. Not only do you want to find an affordable contractor, but you also want to make sure the work is done correctly and efficiently. Ask other property owners for referrals and look on dependable review sites such as Yelp. Also be sure that you talk to a few different contractors so you can carefully weigh different options and, ultimately, choose the one that works best for you.
Much like investing in a new property, converting your units involves a significant up-front expense that can pay off in spades in the long-run. Carefully consider your whys, whens, and hows before beginning the conversion process and you’ve already mastered half the battle.
Thursday, July 30, 2009
Managing Your Reputation Online
A real Social Media CHALLANGE has become apparent in the past couple of days, evidenced by a certain management company that’s taking a lot of heat in the media, both on- and off-line. So how does a company respond adeptly, in real time, to controversy in this new world? Managing your reputation effectively in the social media sphere requires a four-pronged approach:
1) Be aware of the tools and services, and know their functionality. (e.g. understand sites/applications like Yelp, Digg, Apartment Rating sites, Twitter, Facebook, LinkedIn, FriendFeed and others, and why and how people/residents use these tools, or may prefer one tool over another).
2) Before you leap, look and listen to what is being said about you, our industry, and the competition in each of these networks to get an understanding of the environment.
3) Engage in a direct, trustworthy manner that positions the company as a peer instead of a bully … in other words, don’t use social media as your megaphone.
4) Be prepared for social media’s transparency. How you respond in a controversial situation will be at least as visible — if not more so — than what you’re responding to.
Engaging too soon, and without having a strategy or accurate understanding of the outlets, is bound to #fail. Engaging without listening first to what is being said about you is bound to #fail. But … and this is tricky … so, too is a strategy that abandons a proven “old way” of doing things completely in favor of a “new way”.
http://www.multifamilypro.com/blog/?p=185&awt_l=5ncUB&awt_m=1a.HXMNISwcgp8
1) Be aware of the tools and services, and know their functionality. (e.g. understand sites/applications like Yelp, Digg, Apartment Rating sites, Twitter, Facebook, LinkedIn, FriendFeed and others, and why and how people/residents use these tools, or may prefer one tool over another).
2) Before you leap, look and listen to what is being said about you, our industry, and the competition in each of these networks to get an understanding of the environment.
3) Engage in a direct, trustworthy manner that positions the company as a peer instead of a bully … in other words, don’t use social media as your megaphone.
4) Be prepared for social media’s transparency. How you respond in a controversial situation will be at least as visible — if not more so — than what you’re responding to.
Engaging too soon, and without having a strategy or accurate understanding of the outlets, is bound to #fail. Engaging without listening first to what is being said about you is bound to #fail. But … and this is tricky … so, too is a strategy that abandons a proven “old way” of doing things completely in favor of a “new way”.
http://www.multifamilypro.com/blog/?p=185&awt_l=5ncUB&awt_m=1a.HXMNISwcgp8
Wednesday, July 29, 2009
Minimum Wage Increase
Minimum Wage Increase
On July 24, 2009, the current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour. All covered employers, regardless of size, are required to post the most recent Minimum Wage poster, even if your state’s minimum wage differs.
This is a good time to make sure you’re also displaying the latest Family and Medical Leave Act (FMLA) poster based on revisions finalized in November. The new mandated poster went into effect January 16, 2009.
Both of these required posters are available for download from the Department of Labor website at http://www.dol.gov/esa/whd/resources/posters.htm.
Tip: The Federal Government requires display of six posters, all of which are available in a convenient 6-in-1 format from Progressive Business Compliance.
On July 24, 2009, the current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour. All covered employers, regardless of size, are required to post the most recent Minimum Wage poster, even if your state’s minimum wage differs.
This is a good time to make sure you’re also displaying the latest Family and Medical Leave Act (FMLA) poster based on revisions finalized in November. The new mandated poster went into effect January 16, 2009.
Both of these required posters are available for download from the Department of Labor website at http://www.dol.gov/esa/whd/resources/posters.htm.
Tip: The Federal Government requires display of six posters, all of which are available in a convenient 6-in-1 format from Progressive Business Compliance.
Thursday, July 16, 2009
High End rental Markets
High-End Rental Markets on Downward Trend
A recent nationwide study of rents and occupancy, conducted by RealFacts for 2Q09, reveal that renters are showing resistance to paying a premium to rent an apartment in a high-end market.
Rents were in decline in every market nationwide in the current quarter except for a few modest increases in Tampa-St Petersburg, FL at 1.2%; Kansas City, MO at 0.7% and San Antonio, TX at 0.6%. On average, asking rents are down nationwide in the second quarter of 2009 from $968/mo.over first quarter at $978/mo. The markets that were hit hardest this quarter are high-end markets such as those in California. The San Francisco Bay Area, usually ranked as the most expensive place to live in the country, lost some of its luster this quarter. The current quarter’s decline comes on the heels of similar losses sustained in 1Q09.
The San Jose area posted the greatest decline for the current quarter at -3.8%, followed by San Francisco at -2.7% and Austin, Texas at -2.4%. Other struggling markets are Oxnard-Thousand Oaks at -1.8%; Riverside-San Bernardino, CA at -1.8% and Los Angeles at -1.6%. With the exception of Austin, TX what these markets have in common is that they are located in California and their average rental rates are over $1,000.00/mo.
The RealFacts survey demonstrates the effects of higher than average unemployment statistics in California. According to a May 2009 survey released by the EDD, California’s unemployment stood at 11.5%, compared to the National average of 9.4%. The San Francisco Business Times reported that the Bay Area lost 130,000 jobs from May 2008 to May 2009. Companies like Yahoo!, headquartered in Silicon Valley have had to make cuts of about 10% of its regular staffers.
On the brighter side of the rental markets, the rate at which occupancy has been declining in the past two quarters has slowed down in the second quarter of 2009. This suggests that asking rents are beginning to reflect what the market can bear. For example, in Oxnard California, the average rent went from $1551/mo. down to $1,473/mo. But the occupancy rate actually increased by nearly 1.0% in this same quarter.
Other markets that posted positive absorption this quarter were Orlando, FL, 0.6%, San Francisco, 0.4% and San Jose at 0.3%. All other markets were down. The highest drop in occupancy for the quarter was found in Boise, ID at -3.2%, Oaklahoma City, OK at -2.1% and Indianapolis, IN at -1.4%.
It’s seems today’s renter is looking for a bargain. There aren’t enough high income renters with good credit to commit to premium rents prevalent in high-end markets. Many renters have been forced out of high markets due to lack of employment opportunities or sufficient income. In some cases these renters decide to move to a location where housing is less expensive and where they can rent the same quality apartment unit for less than half the price.
(Source: RealFacts, http://www.realfacts.com/, phone: 415-844-2480)
a2a_linkname=document.title;a2a_linkurl=location.href;
This entry was posted on Wednesday, July 15th, 2009 at 3:01 pm and is filed under Economy, Industry, Trend. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply
You must be logged in to post a comment.
A recent nationwide study of rents and occupancy, conducted by RealFacts for 2Q09, reveal that renters are showing resistance to paying a premium to rent an apartment in a high-end market.
Rents were in decline in every market nationwide in the current quarter except for a few modest increases in Tampa-St Petersburg, FL at 1.2%; Kansas City, MO at 0.7% and San Antonio, TX at 0.6%. On average, asking rents are down nationwide in the second quarter of 2009 from $968/mo.over first quarter at $978/mo. The markets that were hit hardest this quarter are high-end markets such as those in California. The San Francisco Bay Area, usually ranked as the most expensive place to live in the country, lost some of its luster this quarter. The current quarter’s decline comes on the heels of similar losses sustained in 1Q09.
The San Jose area posted the greatest decline for the current quarter at -3.8%, followed by San Francisco at -2.7% and Austin, Texas at -2.4%. Other struggling markets are Oxnard-Thousand Oaks at -1.8%; Riverside-San Bernardino, CA at -1.8% and Los Angeles at -1.6%. With the exception of Austin, TX what these markets have in common is that they are located in California and their average rental rates are over $1,000.00/mo.
The RealFacts survey demonstrates the effects of higher than average unemployment statistics in California. According to a May 2009 survey released by the EDD, California’s unemployment stood at 11.5%, compared to the National average of 9.4%. The San Francisco Business Times reported that the Bay Area lost 130,000 jobs from May 2008 to May 2009. Companies like Yahoo!, headquartered in Silicon Valley have had to make cuts of about 10% of its regular staffers.
On the brighter side of the rental markets, the rate at which occupancy has been declining in the past two quarters has slowed down in the second quarter of 2009. This suggests that asking rents are beginning to reflect what the market can bear. For example, in Oxnard California, the average rent went from $1551/mo. down to $1,473/mo. But the occupancy rate actually increased by nearly 1.0% in this same quarter.
Other markets that posted positive absorption this quarter were Orlando, FL, 0.6%, San Francisco, 0.4% and San Jose at 0.3%. All other markets were down. The highest drop in occupancy for the quarter was found in Boise, ID at -3.2%, Oaklahoma City, OK at -2.1% and Indianapolis, IN at -1.4%.
It’s seems today’s renter is looking for a bargain. There aren’t enough high income renters with good credit to commit to premium rents prevalent in high-end markets. Many renters have been forced out of high markets due to lack of employment opportunities or sufficient income. In some cases these renters decide to move to a location where housing is less expensive and where they can rent the same quality apartment unit for less than half the price.
(Source: RealFacts, http://www.realfacts.com/, phone: 415-844-2480)
a2a_linkname=document.title;a2a_linkurl=location.href;
This entry was posted on Wednesday, July 15th, 2009 at 3:01 pm and is filed under Economy, Industry, Trend. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a Reply
You must be logged in to post a comment.
Subscribe to:
Posts (Atom)
Posts
